Limited company: Dividend query

Hi,

I am the main shareholder for my limited company and draw salary and dividend for each month. My ILR is due on Jan 2016.
My query is should i leave personal tax amount and corporation tax amonut in business account before taking my dividend . For example if my company turn over is 7000/month and i take 1000 as salary, can i take remaining 6000 as dividend or shoulde i leave corporation tax (20%) and personal tax amount (for salary and divident) in my business account and take remaining amount as dividend . Can members shed light on these so i can draw dividend correctly for my ILR earning component.

Many Thanks
siva

You need to leave provision for corporation tax, NI, income tax and reserves in your company account before taking dividend. If you do not follow the dividend related guidelines available on HMRC website, they can declare such dividends as illegal dividend.

Profit=Income-allvExpenses
Dividend=Profit-corporation tax

I would advise you to hire good accountant for your paperwork.

Ta

Thanks guys.

BATHE wrote:Hi,

I am the main shareholder for my limited company and draw salary and dividend for each month. My ILR is due on Jan 2016.
My query is should i leave personal tax amount and corporation tax amonut in business account before taking my dividend . For example if my company turn over is 7000/month and i take 1000 as salary, can i take remaining 6000 as dividend or shoulde i leave corporation tax (20%) and personal tax amount (for salary and divident) in my business account and take remaining amount as dividend . Can members shed light on these so i can draw dividend correctly for my ILR earning component.

Many Thanks
siva

Siva email your number to me TestVisa2015@gmail.com

created for you.

Hi, I have e mailed my number to your email id. Thanks.