At a loss about dividends

[MrMarkyMark]

This is entirely my opinion but I don't think you need to worry about paying salary or dividends when you are not making any money or even if you are in a negative equity situation.

People "think" a lot of things, that does not make them right .

I see your point about the way big firms "manage" their business, but a lot of them do not pay corporation tax either.
Do you think you would get away with that?

[SimonMac]

People "think" a lot of things, that does not make them right .

Opinions are like arseholes, everybody has one but very few people should share there's with the rest of us

[VectraMan]

The balance sheet shows "shareholders funds". That's the most you can pay. Pay more than that and it's pretty black and white that the dividends are illegal, and as that's submitted to Companies House they could probably institute some kind of automated checking and you could find yourself in the cells the day after submitting your annual accounts.

Why is this in General? What's it got to do with immigrants and lunch?

[psychocandy]

Yes I always thought paying dividends when there was no profit was not allowed. Certainly my accountant would say no you can't do that.

However, and these people are sole traders Im guessing, the business forums are full of people who spend the VAT/tax money and then worry about it later. I suppose in some cases, liek if you've got shop and need stock, they need to keep the business going.

Seems in a lot of cases though, people then hold their hands up, say cant pay, and get away with a lot of it.

[DaveB]

The balance sheet shows "shareholders funds". That's the most you can pay. Pay more than that and it's pretty black and white that the dividends are illegal, and as that's submitted to Companies House they could probably institute some kind of automated checking and you could find yourself in the cells the day after submitting your annual accounts.

Why is this in General? What's it got to do with immigrants and lunch?

This