Share Dividends in the lean years

[Brown and Boris]

We are looking at a lean year in our 2 man limited Co. We may not make enough this year after CT to pay our usual dividend of £30K each.

I recall that as we have in the past earned more in profit than we took in dividend that we can still take out more than this year's profits allow, if the retained tax paid profit from previous years can bear it?

[mondeoman]

Brown and Boris said:

We are looking at a lean year in our 2 man limited Co. We may not make enough this year after CT to pay our usual dividend of £30K each.

I recall that as we have in the past earned more in profit than we took in dividend that we can still take out more than this year's profits allow, if the retained tax paid profit from previous years can bear it?

If you have the money in the bank and have enough set aside to pay your bills - VAT, Corp Tax etc..., then you can take a dividend any time you like. It's simply you taking the profit out of the business, as directors that is yuor decision. If you have banked previous years profits then they are there for you to use as you see fit.

What you can't do is take a dividend (profit share) if the company has no profit!

Ususal proviso's, disclaimers etc...

[Brown and Boris]

mondeoman said:

Brown and Boris said:

We are looking at a lean year in our 2 man limited Co. We may not make enough this year after CT to pay our usual dividend of £30K each.

I recall that as we have in the past earned more in profit than we took in dividend that we can still take out more than this year's profits allow, if the retained tax paid profit from previous years can bear it?

If you have the money in the bank and have enough set aside to pay your bills - VAT, Corp Tax etc..., then you can take a dividend any time you like. It's simply you taking the profit out of the business, as directors that is yuor decision. If you have banked previous years profits then they are there for you to use as you see fit.

What you can't do is take a dividend (profit share) if the company has no profit!

Ususal proviso's, disclaimers etc...

Thanks MM, I thought/hoped that was the case.