Paying Dividends

jknightjones, post: 18020 a écrit : Hi, I'm in the process of setting up a limited company & cannot get any straight information regarding the payment of dividends. i know why their paid but when are they paid? Before payment of orporation tax or afterwards?

Any advice would be much appreciated.

J

Hello J

Dividends can be paid whenever the directors of the company choose at a minuted meeting. However, there needs to be a profit shown in the books or at the very least a “reasonable expectation” of a profit, which means that you need to keep proper accounting records.

Dividends are paid net of Corporation Tax and the company should set aside the tax to pay over to HMRC once a year.

Should you have any further queries, please do not hesitate to contact me.

Martin Mckechnie
Client Services Director
The LowTax Group