Quick basic dividend question

[DesDixon]

My Ltd Co is just completing it's first year of accounts (financial year end is end of March 2018).

Retained profit is £22k.

What I wanted to know is if I could have declared a dividend of say £30k in March 2018 but to be paid later (i.e. when there are sufficient funds available) OR can the max dividend only be £22k so the company balance does not go into the red?

[northernladuk]

My Ltd Co is just completing it's first year of accounts (financial year end is end of March 2018).

Retained profit is £22k.

What I wanted to know is if I could have declared a dividend of say £30k in March 2018 but to be paid later (i.e. when there are sufficient funds available) OR can the max dividend only be £22k so the company balance does not go into the red?

Dividends can only be paid from PROFITS after tax.

Limited Company Dividends Guide
(Ignore anything to do with the dates. It's old)

I do hope it's your accountant that is preparing your accounts for you. Do we assume your accountant doesn't offer FA?

[DesDixon]

Thanks for that, had a bit of a brain fart and appreciate the far quicker response than my Accountant

[northernladuk]

And a thread on deferred dividend payments which might be of interest...

https://www.contractoruk.com/forums/...-payments.html

[mudskipper]

My Ltd Co is just completing it's first year of accounts (financial year end is end of March 2018).

Retained profit is £22k.

What I wanted to know is if I could have declared a dividend of say £30k in March 2018 but to be paid later (i.e. when there are sufficient funds available) OR can the max dividend only be £22k so the company balance does not go into the red?

The question is academic, as you cannot backdate a dividend and we are a long way past March.