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Dividends

Laura8192Laura8192 Feels At HomeRegistered Posts: 95
If a Limited Company client has a year end of 31st May for example, can they put any money they transfer to themselves to the directors loan account throughout the year, and then just declare a dividend on 31st May for the total they have had? Providing there is enough profits in the business at 31st May of course....

I think that this would be ok, just need another sense check!

Thanks
Laura

Comments

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,432
    Hi Laura,
    If they use the director's loan account and it exceeds £5000 during the tax year won't they have to declare it as a beneficial loan and pay extra tax on it?
  • Laura8192Laura8192 Feels At Home Registered Posts: 95
    thank you for raising this, I hadn't thought of that. I will do some more research.
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