Yeah, I see what you mean. It's another good reason to pay yourself a £10k salary in that event.
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Dividends or PAYE
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BTW my accountant told me that it doesn't matter how often I take dividends - for instance each month - whereas a friend was advised by his to take dividends once a year. Does it really matter?
Thanks.Comment
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Originally posted by Daventry View PostBTW my accountant told me that it doesn't matter how often I take dividends - for instance each month - whereas a friend was advised by his to take dividends once a year. Does it really matter?
Thanks.Comment
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Originally posted by Daventry View PostBTW my accountant told me that it doesn't matter how often I take dividends - for instance each month - whereas a friend was advised by his to take dividends once a year. Does it really matter?
Thanks.
Personally I declare them quarterly although if you have a big enough war chest to do it (i.e. enough retained profit in the company), probably the best thing you can do, depending on your circumstances, is take the whole years worth in one go.
If you have an offset mortgage, you could stick it in there which saves you money, if you have a normal mortgage and your good enough at budgeting that you know you can afford overpayments, you could make a lump sum overpayment (which saves you more in interest than making regular monthly overpayments). Or you can stick some of it in an ISA although that won't earn you a whole lot right now.Comment
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Tcp, the reason it sounds like bollocks is simple. It is.
the only thing that matters is that they are properly declared.Comment
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Originally posted by ASB View PostTcp, the reason it sounds like bollocks is simple. It is.
the only thing that matters is that they are properly declared.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Does anybody know where this idea that you shouldn't take monthly dividends came from? It's quite odd. As ASB says, as long as their is sufficient retained profit and the correct paperwork is drawn up, a dividend is a dividend.
About the only genuine reasons for not taking them monthly that I can think of are 1) you can do more with the money if you take as much as you can in one go and b) less paperwork.Comment
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Originally posted by TheCyclingProgrammer View PostDoes anybody know where this idea that you shouldn't take monthly dividends came from? It's quite odd. As ASB says, as long as their is sufficient retained profit and the correct paperwork is drawn up, a dividend is a dividend.
About the only genuine reasons for not taking them monthly that I can think of are 1) you can do more with the money if you take as much as you can in one go and b) less paperwork.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by TheCyclingProgrammer View PostDoes anybody know where this idea that you shouldn't take monthly dividends came from? It's quite odd. As ASB says, as long as their is sufficient retained profit and the correct paperwork is drawn up, a dividend is a dividend.
About the only genuine reasons for not taking them monthly that I can think of are 1) you can do more with the money if you take as much as you can in one go and b) less paperwork.
I dont recall any of the accountants being particularly cautious save for the natural make sure paperwork is ok.
I guess there could be problems with certain articless. However the remedy for an illegal dividend is that it gets repaid. Not that is magically turns into salary.Comment
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Originally posted by ASB View PostI guess there could be problems with certain articless. However the remedy for an illegal dividend is that it gets repaid. Not that is magically turns into salary.
That said, if you can't be arsed to take the time to get it right (it's not rocket science), then more fool you.Comment
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