Dividends
Options
Sevren
Registered Posts: 101 Dedicated contributor 🦉
Hi all,
This another back to basics moment but I am having difficulty in getting a definitive answer in an area which is not a strong point.
If a Ltd company trades for 3 years and makes a loss evey year (to a total of say £20K) but then makes a profit in the 4th year of say £10K - are the directors able to take this as a dividend or does the retained profits accounts need to be in surplus before a dividend can be taken ??
Many thanks
This another back to basics moment but I am having difficulty in getting a definitive answer in an area which is not a strong point.
If a Ltd company trades for 3 years and makes a loss evey year (to a total of say £20K) but then makes a profit in the 4th year of say £10K - are the directors able to take this as a dividend or does the retained profits accounts need to be in surplus before a dividend can be taken ??
Many thanks
0
Comments
-
No they are not entitled to a dividend as they still have brought forward negative reserves.
Kind regards
Steve0 -
Many thanks Steve - that was my understanding but had a confidence wobble.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.4K For AAT students
- 264 NEW! Qualifications 2022
- 144 General Qualifications 2022 discussion
- 9 AAT Level 2 Certificate in Accounting
- 45 AAT Level 3 Diploma in Accounting
- 66 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 268 VAT
- 90 Software
- 271 Tax
- 133 Bookkeeping
- 7.1K General accounting discussion
- 195 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 578 Job postings
- 16 Who can benefit from AAT?
- 35 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership