It is increasingly common, particularly in owner-managed companies, for directors and/or shareholders to take remuneration by way of a modest salary, topped up by dividends. Such a practice helps to minimise the overall tax position on the remuneration paid whilst at the same time optimising the rewards for the director’s endeavours.
We can review your dividend position in relation to your accounts to ensure that your dividend payments comply with the Companies Act 2006. Before declaring a dividend, directors must be as certain as they can be that there are sufficient distributable reserves available, including taking into account any corporation tax on profits earned since the last annual accounts were prepared.
For further information on dividend optimisation or to arrange a free initial consultation to discuss in more detail how we can help you, please contact us.