How to withdraw funds from your organisation – Dividends
This month’s theme for MJB Avanti is How To Withdraw Funds From Your Organisation and this week we will cover Dividends
Dividends are a bonus paid to shareholders (the owners of a company) for doing well. They should not be regular income, that HMRC could in fact class as payroll.
Dividends can only be taken when there is profit and a positive balance sheet however you should not take dividends if you owe money to HMRC.
They are still a very tax efficient way of withdrawing money from a company the tax charge is lower than PAYE and there is no NI.
MJB Avanti provide a full Payroll Bureau Service and included within that is the legal paperwork you must provide including Dividend Vouchers and Minutes of meeting. If you know a limited company that needs help with their legal requirements for dividends please ask them to contact me.