Limited company divs - still by cheque?

[Olf]

Hello,

We've always followed the practice of issuing cheques for the annual dividend payment for a small limited company. Is this still or was it ever required in these days of electronic bank transfers? I notice the divs I get from a FTSE co are paid electronically.

Cheers.

[Devilstreak]

Pay them however you like. Just keep the record

[48k]

Have never heard of it being a requirement. Have always paid them by BACS. My Ltd co doesn't even have a chequebook anyway.

[0000]

I've done it by BACS over the telephone - my account can't do it direct online if it exceeds £10k or so. If I did it by cheque could I save a phone call?

[trickywoo]

I'm sure you have a good reason for your accountant having acces to your account but it's not something I would do.

The most I've paid electronically from online business account was about £25k for corporation tax. No problem at all. I pay five figure dividends the same way.

Pay it as convenient.

[Olf]

Thanks all!

[Eric Mc]

There was never any legal requirement for dividends to be paid by cheque only. Where did you get this idea from?

[Piersman2]

Eric Mc said:

There was never any legal requirement for dividends to be paid by cheque only. Where did you get this idea from?

Or for dividends to be paid annually, quarterly or indeed on any schedule. Dividends can be paid at any time, and by direct bank transfer, which is what I do. I just keep a tracker so it's clear what is dividend and what is not when I send the books up to the accountant each year.