Reply to: Expenses V dividend

[Nathan SJD Accountancy]

I think Martin meant to say that a dividend will reduce the retained profit by £100.

Alan

I assumed that Martin meant retained profit too.

[Nixon Williams]

I am an accountant and I don't think this is the case. A dividend of £100 will reduce the profit by £0.

I think Martin meant to say that a dividend will reduce the retained profit by £100.

Alan

[Martin at NixonWilliams]

I am an accountant and I don't think this is the case. A dividend of £100 will reduce the profit by £0.

Hi Punter,

I was referring to the effect on the retained earnings.

In the context of the question (i.e. expenses vs. dividend) it is important to recognise how each option effects the retained earnings as a whole.

Martin

[kingcook]

I am an accountant and I don't think this is the case. A dividend of £100 will reduce the profit by £0.

Dividends are paid from profits (after corp tax and other expenses), yes?

Say your company has made a profit of £5K (after corp tax and other expenses).

You then take a £100 dividend.

How much profit is left in the company?

[Ignis Fatuus]

I am an accountant and I don't think this is the case. A dividend of £100 will reduce the profit by £0.

I suppose technically that is self-evident, since dividends may only be paid from profit, so you must have the profit first, ergo the dividend can't reduce it.

But you could sensibly say that having got the profit, paying a dividend reduces it, or at least what's left of it.

Depends whether you mean the accounting amount of profit, or the money in the Co resulting from it.

[Punter]

One is the effect on your profit, a £100 expense will reduce the company's profit by £80 (assuming it is tax deductible) as 20% relief will be given, whereas a dividend of £100 will reduce the profit by £100.

Martin

I am an accountant and I don't think this is the case. A dividend of £100 will reduce the profit by £0.

[speling bee]

Well if you believe what you find on wikipedia, say no more.

Bored with this now.

I find wiki more trustworthy than a pyramid scheme operator.

[DaveP]

Multi-level marketing - Wikipedia, the free encyclopedia

Next!

Well if you believe what you find on wikipedia, say no more.

Bored with this now.

[speling bee]

Network Marketing

Multi-level marketing


From Wikipedia, the free encyclopedia

(Redirected from Network marketing)

Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant's downline, and can provide multiple levels of compensation.[1] Other terms for MLM include pyramid selling,[2][3][4][5][6] network marketing,[7][8][9] and referral marketing.[10]

Many pyramid schemes try to present themselves as legitimate MLM businesses.[11] However, there are people who hold that all MLMs are essentially pyramid schemes even if legal.[

Multi-level marketing - Wikipedia, the free encyclopedia

Next!

[DaveP]

Isn't that exactly what a pyramid scheme operator would say?

Network Marketing

[speling bee]

yes, but no i'm not operating any scheme.

Isn't that exactly what a pyramid scheme operator would say?

[DaveP]

And we have your word as a pyramid scheme operator on that?

yes, but no i'm not operating any scheme.

[speling bee]

NO !

And we have your word as a pyramid scheme operator on that?

[DaveP]

Is utility warehouse a pyramid scheme?

NO !

[lithium147]

Is utility warehouse a pyramid scheme?