Year End Dividend withdrawal from LTD company

[Matt_E91]

Morning.

I wonder if I can get some sage advise from the forum about this.

I am a shareholder in a Limited company, of which I manage day to day. We have, miraculously, turned a good profit this year and would like to withdraw dividends at the end of the month and distribute between the three shareholders.

We’ve adopted a profit first style approach to dissecting funds as we receive payments. Is there any generic or hard and fast rule to say, ‘retain x capital in the business, invest x, split y’

We’ve taken care of Corp Tax for next year, and have set aside at least 2 Quarters of VAT payment. Overheads are very low per month - it’s 2 staff on the payroll, no rent etc.

I’ve had a meeting with my accountant but the conversation lacked any clear definitive advise.

Any non-binding advise appreciated.

[Eric Mc]

Why would you want to leave funds in the company bank account?

Does the business you are in require you to keep certain levels of retained profits in the company?

If you do need to do so, how much would you want to retain?

[Matt_E91]

Good point. My industry does not require any funds to be held in accounts.

The only retention I was planning to hold back was 3 months overhead in our wages account.