information on earning needed please

[mrashid10249]

Hi there

i have a question please regarding earnings

I am a professional Process engineer. i ve a newsagents shop business as well for which i setup a limited company. i started my business on 1st of April 2012. i have to apply ILR next year in May 2013. for which i wish to show income (32k) from my business. i discussed with my accountant, and with his suggestion, i ve set a minimum salary (630 pounds/month) which i ve setup a standing order to my personal account. rest of the money (24400) would be as dividends.

my question is, how i may get those dividend money? i know dividends are a distributeble profits in my company. can i get dividends on weekly basis? means if i divide 24400 on next 36 weeks untill 31 march, it comes as about 680 pounds a week. can i draw such amount from my business account to personal one assigning it as dividend. would it be legally ok?
as so far i dont know the actual annual profit, so whether this drawing will be okey or i ll have to wait for full year to declare the dividends please?

[O_Relly]

You can declare dividends from the profits retained in the company. You don't have to wait full year to declare dividends. You may declare a dividend of any amount from the profits available.

AFAIK, you can process dividends once a month and it's perfectly legal to do so.

[tier1Reading]

. rest of the money (24400) would be as dividends.

Note that to show £24400 as your income from dividend, you can declare dividends of £22000 and you will get a tax credit of 2444.44....

You can get more information on dividends from here...
http://www.hmrc.gov.uk/taxon/uk.htm

http://www.ukba.homeoffice.gov.uk/sitec ... iew=Binary

Let me know if you require an excel to calculate dividend... i will email to your hotmail account.

[mrashid10249]

thank you very much for the help. so i should declare once a month rather than weekly please?

[tier1Reading]

Upto you. You can either declare dividend weekly, fortnightly, monthly, quaterly, or yearly.

[O_Relly]

Upto you. You can either declare dividend weekly, fortnightly, monthly, quaterly, or yearly.

I was told by my accountant that I could declare dividends once a month. You might want to check if you can do it weekly ?

[mrashid10249]

thanks all for reply. actually my accountant doesn't know much about immigration point of view. can anybody else confirm whether i may draw dividends once a month only or i can weekly as well please?

actually its a newsagents shop. sales & income are normally accessed on weekly basis

[tier1Reading]

http://www.contractorcalculator.co.uk/d ... ained.aspx

[ankitv]

you can process dividends once a month and it's perfectly legal to do so.

Can and legally allowed, but not advisable. There should be enough distributable profit to declare dividends. Its an acceptable practice to declare it 3 months.