Re Dividend from Limited Company

[srirags]

This post is on behalf of my friend as he is not registered with this site:

My friend is running a limited company and his ilr is due in the month of feb 2012.

He has issued himself an annual dividend in the month of June 2011 (as his accounting period ends by June 2011). The dividend is issued for his accountng period 2010-2011.

Question is will the dividend be splitted equally for that 12 months (July 2010 to June 2011) and should he calculate the dividend for the portion of months that lies immediate 12 months befor feb 2012 ? (or) can he consider the total amount as hs earning in his immediate 12 months before feb 2012.

Let me know if it is confusing. Even I got confused when he first explained his scenario to me

Thanks

[srirags]

Seniors/ Moderators,

Is there any answer to the above question. Guidance note doesn't say anyting about this.

Thanks,

[goldfish]

The dividend is a single payment. It isn't split. The accounting period is irrelevant. It counts as earnings in the month when it was made, ie June 2011.