Taking dividend in the first year of a company

MR_Punk

MR_Punk

MR_Punk

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Okay so a bit of background. Myself and my wife set up a company at the end of last year. I was made redundant in December (I knew this was coming) so I've changed careers and have used the redundancy money as a wage up until this point. My wife is currently doing work for our company alongside her own job. (We are Surveyors). She will be leaving her job in May to go FT with our company as it's going rather well. The question is, to make things a bit neater (no idea if this is a good idea), I didn't intend to take a wage until the new tax year. However I believe that each year directors can take a dividend (as long as it's agreed which obviously it is). The cap on this has gone down to £1k per director a year if I am doing my research well. However can this be taking in the first year if that year is not completed. The idea would be to take £2k tax free in total as a bit of a bonus. Hopefully I've made this clear. Any advice would be greatly appreciated.
 

Maccy

Maccy

Maccy

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Talk to an accountant, but providing the business is operating at a profit then you can take dividends at pretty much any time.

Worth checking how the company has been set up - are you equal 50:50 shareholders? If so then you'll need to ensure that you take equal dividends.
 

DanTheMan

DanTheMan

DanTheMan

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Nothing to stop you taking dividends at any time if the company is in profit to at least the tune of the dividend amount.

As long as it's recorded properly in the accounts (could go down as an interim dividend if not finalised in the accounts) and any tax is paid, then it should be fine.

As always, speak to an accountant if unsure.
 
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