Originally posted by northernladuk
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Reducing Payment on account for large dividend
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Originally posted by pr1 View Postbut legally they're all limited companies and under the same rules?'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View PostBut they can still be completely different animals. Large companies can not shoehorn divis through at the last minute like we can. They have to hold AGM and vote on the divis and so on. Something you (and most contractors) probably don't appreciate when ticking your boxes. It's us bending the rules and taking them down to the wire where many other larger companies simply cannot.
Which they could do at any time. It's unlikely that they would declare a dividend that late in the tax year, but they could.
Even so, it is the responsibility of the tax payer to ensure that they have all the paperwork for the tax year correct when they file their return. It would be very silly to do that on April 8th, when it's unlikely that you will have the paperwork - but if you did, then you would be liable for the error.Comment
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Originally posted by northernladuk View PostBut they can still be completely different animals. Large companies can not shoehorn divis through at the last minute like we can. They have to hold AGM and vote on the divis and so on. Something you (and most contractors) probably don't appreciate when ticking your boxes. It's us bending the rules and taking them down to the wire where many other larger companies simply cannot.Comment
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Originally posted by pr1 View PostI also hold board meetings and vote on dividends - I've got the paperwork to prove it!Last edited by northernladuk; 4 April 2016, 09:08.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by WordIsBond View PostIn that case, the pension approach JB mentioned isn't in the picture.
Has your corporation tax from your last completed tax year been paid, and if not, how much was it? If you don't retain enough to cover tax liabilities already incurred (CT for your prior year plus CT for the current year to date, plus any VAT due on revenue to date), you've paid an illegal dividend.‘His body, his mind and his soul are his capital, and his task in life is to invest it favourably to make a profit of himself.’ (Erich Fromm, ‘The Sane Society’, Routledge, 1991, p.138)Comment
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