Confused about dividends and which profit to use
Londina
Registered Posts: 814 Epic contributor 🐘
Probably for some this is an obvious question, but as I have never dealt with dividends for company director I'm quite confused...on which profit dividends can be paid? on current year or retained ones?
Example company at 30/06 made a profit of £160K, they have losses b/f of £120K, so retained earnings on balance sheet is £40K.
So which profits the director can choose? £160K or £40K? .....
Cheers
Example company at 30/06 made a profit of £160K, they have losses b/f of £120K, so retained earnings on balance sheet is £40K.
So which profits the director can choose? £160K or £40K? .....
Cheers
0
Comments
-
many thanks Mrne89 for confirming, I guessed it would be on retained ones but wasn't sure as director insists on taking dividends out of £160K and it's now causing a negative balance sheet!0
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Most of the £160k profit this year must surely be repaying his DLA that funded the huge loss last year?0
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