Hi,
I run an ltd company. The company made just around 7000 in total the whole year.
I've paid myself 2000 in dividends and 4000 in salary in 2019/2020.
I kept 1000 on the side to pay as dividend on April 6 2020 (to be part of the dividend allowance of 2020).
I have one single client left and the client wanted to half the work on April 1 and reduce the contract to just £250 a month. I asked for a day to think about whether to agree to the new terms or cancel the contract.
My questions are:
- Can I put that contract on pause for a few months (if the client accepts, and cancel if not), and put myself on furlough starting April 3?
- In April and May of this past year I had paid myself 500 each. So on furlough that'd be 400 instead of the 250 above. That is better than accepting the new terms. And since pay was not the same every month this past year, I assume then one can claim the pay of April and May 2019 instead of average?
- Most importantly, I had been awaiting that 1000 dividend, and wanted to declare and pay it on April 6 2020.
Can this still be done if I furlough myself? With no income coming in anymore and then claiming the 80%, is it still ok to pay myself that 1000 dividend?
Thank you for your advice.
I run an ltd company. The company made just around 7000 in total the whole year.
I've paid myself 2000 in dividends and 4000 in salary in 2019/2020.
I kept 1000 on the side to pay as dividend on April 6 2020 (to be part of the dividend allowance of 2020).
I have one single client left and the client wanted to half the work on April 1 and reduce the contract to just £250 a month. I asked for a day to think about whether to agree to the new terms or cancel the contract.
My questions are:
- Can I put that contract on pause for a few months (if the client accepts, and cancel if not), and put myself on furlough starting April 3?
- In April and May of this past year I had paid myself 500 each. So on furlough that'd be 400 instead of the 250 above. That is better than accepting the new terms. And since pay was not the same every month this past year, I assume then one can claim the pay of April and May 2019 instead of average?
- Most importantly, I had been awaiting that 1000 dividend, and wanted to declare and pay it on April 6 2020.
Can this still be done if I furlough myself? With no income coming in anymore and then claiming the 80%, is it still ok to pay myself that 1000 dividend?
Thank you for your advice.
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