BTC - Limited companies wages & dividends

vnoo

i am getting confused please help :-)
Are directors wages and the dividends which the directors take from the limited company allowable?
thank you

crispy

For a Limited company the director's wages would be allowable, divdiends however are not an expense but a distribution of the reserves (retained earnings) of the company to the shareholders.

Eg.

Reserves b/f: 100,000
Profit for Year: 50,000
Dividends Paid: (30,000)
Reserves C/f: 120,000

The dividends will be included in the shareholders own individual income tax calculation.

vnoo

Thank You Crispy you been a big help