Dividend from the business

[nahidsarwar]

Dear Senior Members,

I am on tier 1 Entrepreneur Visa. I have invested 50K into my business ( 63K in total). I take monthly minimum salary tax free for a director. In total it comes around 11K. I have taken about 10k Dividend last year and would like to take another 12K dividend from my company. My company makes profit every year. I would like to ask the Senior Member that is it okay to take dividends from my business as I saw some ppl having problem during the extension because they took dividend from their company. please advise.

Regards
Nahid

[tier1in2014]

Any dividends or director salary if its out of your 50k investment will not be accepted by HO . if you took any dividends or director salary best way is to put it back again in company account as directors loan . That money don't need to be reinvested it can just stay in account . Best way is to wait for your extension before you take any dividends or director salary . But if you took any part of it from company's revenue that should be fine .

[nahidsarwar]

I am not taking it from the invested money . My company has enough revenue to take dividend for me. The company made enough profit every year to take dividend.

[tier1in2014]

In that case I guess you will be fine .

[samaygrg]

I am not taking it from the invested money . My company has enough revenue to take dividend for me. The company made enough profit every year to take dividend.

I think its okay to have dividend. If you're closely following the posts herein the board, very recently we had one of our member friend successfully received the visa who had taken dividends. So I reckon it should go fine as long as business is genuinely operating.

[awan905]

As long as you are taking the money on top of 50k then there is no issue.