Dividends

Benny · August 2008

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 · August 2008

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 · August 2008

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 · August 2008

Good coverage of Dividends here

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

Dividends

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