Too many dividends

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Alan @ BroomeAffinity replied

28 August 2008, 14:59
The dvidend relates to undistributed reserves of profit so if the money was there when you issued it then by definition its undistributed profits so you're OK there. Provided the company's obligations to creditors are met (tax, VAT and others) then you are OK.
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ratewhore replied

28 August 2008, 14:58
There's a difference between paying a divvy and declaring it. Pay yourself the money you need to get by and, at the end of the year, make sure your accountant declares the right amount as dividend and the right amount as salary.

All IMHO as IANAA...
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VectraMan started a topic Too many dividends

28 August 2008, 14:56
Too many dividends

In this company year I've only paid one big dividend (April 7th), and pay myself minimum wage salary. I've been working on the Plan B for a couple of months now, and because of that and my previous client not paying up for a month's work, I'm facing the situation where I might run out of money.

There's enough money in the company to pay my salary until the end of the company year (end of Jan) if I earn no more, but if I do that the profit for the year will be less than required for the dividend I've already paid.

The question is: do I need to worry? Do I need to stop paying salary, or refund some of the dividend, or is it not really a problem as long as I can ultimately make my CT payment 9 months later?
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