Home For accounting professionals General accounting discussion


BennyBenny Settling In NicelyRegistered Posts: 24
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!




  • K HK H Feels At Home Registered Posts: 81

    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

  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    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
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Good coverage of Dividends here

    And the relevant paperwork you need to prepare (very important) here
Sign In or Register to comment.