Dividends

Benny

Hi there

does anyone know what the correct procedure is for issuing dividends for profit distribution. Does anyone know of website that explains the process.

I hate limited companies!

Thanks

Ben

K H

dividends

Dividends are a distribution of post tax profits and can either be paid out of accumulated profits b/f or current profits but obviously must not exceed the available after tax profits.

if you look at a company P&L Account you will see that it is taxable profits less tax then less dividends.

there is no tax implication for the company but obviously for the individual they carry a 10% tax credit.

i hope this is useful

best wishes

kh

Bluewednesday

Also have a look at the Companies Act as that will have the rules that you need to follow i.e. record of the vote and certificate etc

Monsoon

Good coverage of Dividends here

And the relevant paperwork you need to prepare (very important) here