Declaring Dividend

[crimson]

To answer your questions:

1) If you are the company director then you can declare as many dividends as you see fit. Some people invoice weekly and declare their dividends weekly too. There's nothing wrong with that so long as you complete the correct paperwork, you need meeting minutes and dividend vouchers.

2) Just state in the meeting minutes that they are "interim dividends"

3) I think the form of words you are using is fairly reasonable. There are lots of other templates for board meetings to declare dividends out there that you can compare with. I think you will also need a dividend voucher with the amount of tax credit shown on it. This calculation is a bit goofy so ask your accountant about it.

If you are uncomfortable with your current accountant then find a new one from the list of recommendations. There are also accountants who advertise or post helpful information on this forum you could check out.

Certainly, your accountant should help you setup a book keeping system whereby you can calculate the state of your company balance sheet on a daily basis and see how much is reserved for Corp Tax, VAT etc and how much is available to distribute as dividends. If you don't then you run the risk of taking dividends ultra vires, ie beyond what your company can pay and causing headaches.

Thank you very much for your detailed advise. I appreciate it.

[Wanderer]

1) Is it ok to use such resolutions to declare dividends 4 0r 5 times during the year?
2) Whether the Dividends declared using written resolutions are considered final dividends or interim dividends?
3) What about the wording of following resolution? Am I missing something?

To answer your questions:

1) If you are the company director then you can declare as many dividends as you see fit. Some people invoice weekly and declare their dividends weekly too. There's nothing wrong with that so long as you complete the correct paperwork, you need meeting minutes and dividend vouchers.

2) Just state in the meeting minutes that they are "interim dividends"

3) I think the form of words you are using is fairly reasonable. There are lots of other templates for board meetings to declare dividends out there that you can compare with. I think you will also need a dividend voucher with the amount of tax credit shown on it. This calculation is a bit goofy so ask your accountant about it.

If you are uncomfortable with your current accountant then find a new one from the list of recommendations. There are also accountants who advertise or post helpful information on this forum you could check out.

Certainly, your accountant should help you setup a book keeping system whereby you can calculate the state of your company balance sheet on a daily basis and see how much is reserved for Corp Tax, VAT etc and how much is available to distribute as dividends. If you don't then you run the risk of taking dividends ultra vires, ie beyond what your company can pay and causing headaches.

[TheFaQQer]

Someone on here had a spreadsheet that they shared which generated the minutes and voucher for you. Can't remember who it was, but I nabbed a copy and amended it for my business.

It's not exactly rocket science to put one together.

[crimson]

You need to get a proper accountant, ASAP!

I use FreeAgent to generate my dividend paperwork, simples. See this page:

The dividend voucher - FreeAgent

I asked a mate once if he fancied doing my accounts (he was in the process of learning how to do it, and I knew bits anyway so thought we could help each other out). I got out of that arrangement before it even started when i asked him if he could prepare my CT600, and he said, "I dunno what that is but i can find out"



Did I mention... get a proper accountant.

Thank you very much king cook. Freeagent site looks good to me.
When I asked my accountant about dividend documentation I got similar reply that you got for CT600.

Thanx Kingcook . Freeagent site looks good to me.

[kingcook]

Ithink you are right, may e he is not incompetent but he is very inexperienced as a matter of fact I am his first client and usually he does not have answers for my questions. Please help

You need to get a proper accountant, ASAP!

I use FreeAgent to generate my dividend paperwork, simples. See this page:

The dividend voucher - FreeAgent

I asked a mate once if he fancied doing my accounts (he was in the process of learning how to do it, and I knew bits anyway so thought we could help each other out). I got out of that arrangement before it even started when i asked him if he could prepare my CT600, and he said, "I dunno what that is but i can find out"

Did I mention... get a proper accountant.

[northernladuk]

Ithink you are right, may e he is not incompetent but he is very inexperienced as a matter of fact I am his first client and usually he does not have answers for my questions. Please help

Why on gods earth did you think it was a good idea to put your companies finances, for which you are legally responsible in the hands of someone that has never done the job before. That is just utterly moronic....

Looks like you have failed in your responsibilites of a director quite spectacularly.

Thought about going brollie?

Have I accused anyone of being a sockie today yet?

[crimson]

Check the sticky at the top of this part of the forum. I would doubt he is incompetent.. a bad workman always blames his tools as they say.

Ithink you are right, may e he is not incompetent but he is very inexperienced as a matter of fact I am his first client and usually he does not have answers for my questions. Please help

[northernladuk]

My accountant is very non cooperative and inexperienced and probably incompetent. I am trying to find a better accountant. I hope some one can help until i find a better accountant as I need to declare dividend soon.........

Check the sticky at the top of this part of the forum. I would doubt he is incompetent.. a bad workman always blames his tools as they say.

[crimson]

My accountant is very non cooperative and inexperienced and probably incompetent. I am trying to find a better accountant. I hope some one can help until i find a better accountant as I need to declare dividend soon.........

[BolshieBastard]

Don't you think it would be a good idea if you asked your accountant?

LOL! (But spot on!)

[kingcook]

Hi, my limited company is now one year old. Last year I paid myself 4 interim dividends and one final dividend. For documentation, I used board of directors’ minutes for interim dividends and minutes of share holders general meeting for final dividend. I expect to pay 4 or 5 dividends in the current year. My accountant suggested that I can declare dividends using simple written resolutions of share holders rather than using board meeting minutes for interim and general meeting minutes for final dividends. Following is the format of written resolution I intend to use. My questions are as following:

1) Is it ok to use such resolutions to declare dividends 4 0r 5 times during the year?
2) Whether the Dividends declared using written resolutions are considered final dividends or interim dividends?
3) What about the wording of following resolution? Am I missing something?
(Below is the draft of resolution I intend to use?)

<snip>

Don't you think it would be a good idea if you asked your accountant?

[crimson]

Hi, my limited company is now one year old. Last year I paid myself 4 interim dividends and one final dividend. For documentation, I used board of directors’ minutes for interim dividends and minutes of share holders general meeting for final dividend. I expect to pay 4 or 5 dividends in the current year. My accountant suggested that I can declare dividends using simple written resolutions of share holders rather than using board meeting minutes for interim and general meeting minutes for final dividends. Following is the format of written resolution I intend to use. My questions are as following:

1) Is it ok to use such resolutions to declare dividends 4 0r 5 times during the year?
2) Whether the Dividends declared using written resolutions are considered final dividends or interim dividends?
3) What about the wording of following resolution? Am I missing something?
(Below is the draft of resolution I intend to use?)




WRITTEN RESOLUTION
OF SHAREHOLDERS of xyz limited
Registered in England and Wales

We, the undersigned, all being members of the above company, for the time being entitled to receive notice of, and vote at General Meetings, hereby unanimously pass the following resolutions and agree that the said resolutions shall for all purposes be as valid and effective as if the same had been passed at a General Meeting of the company duly convened and held. The following written resolutions to declare final dividend and to ratify interim dividend already paid were agreed and passed by the members of the company on 01-02-2020.

I. Following consideration of the availability of distributable profits, it was resolved unanimously to pay a final dividend of £ xx.00 per share (a total final dividend of £ xx00.00) in respect of the year ending on 01-02-2020 to the shareholders of record on 01-02-2020 in the proportion of their respective shareholdings. . It was also decided to pay the dividend though bank transfer on 02-02-2020.

Names of Shareholders: Number of Shares Signature

Abc 100