How often do you take off dividends

[DannyF1966]

Monthly at the moment, but there's enough in there for me to switch to quarterly. I've only been running a Ltd for 18 months though.

[Alf W]

Annually

[AtW]

Every hour.

HTH

sasguru

[EternalOptimist]

The dividend tax will hit me for about 2k a year

so I take out all my cash up to 2k income tax just before April 2016.


then if I need to bail out of my limited, its all a lot smoother

[Contreras]

The same round-sum amount, 2-4 times per year, effectively ad-hoc but based on the company's ability to pay rather than when I need it.

I.e. whenever retained profit exceeds a threshold.

[d000hg]

You don't declare a dividend if the company is making employer contributions to the pension plan.

Why?

[TheFaQQer]

Why?

Because it's not a dividend.

Dividends are paid to the shareholders in proportion of the number of shares that they own, and must be paid from profit. Employer pension contributions are a cost to the business and reduce the amount of profit available to pay dividends.

[d000hg]

Right... but surely in post cases a company would make some pension contribution and still issue dividends, rather than plough all 'profit' into the pension.

[TheFaQQer]

Right... but surely in post cases a company would make some pension contribution and still issue dividends, rather than plough all 'profit' into the pension.

Well, let's go back to what was originally said:

Where's the "Never, MyCo puts it into my pension" option?

Adhoc... you just never need them.

The first quote implies that in that situation, the company never pays a dividend - I'm deducing this from their use of the word "never".

Your post then talks about declaring adhoc dividends - which isn't the case if the company never makes a dividend, as implied by the post that you were answering.

[SimonMac]

Cheers everyone, I have always avoided monthly dividends as I thought it looked dodgy, was surprised to see a quarter of people do this.

I started Ad-hoc and moved to twice yearly