dividends
Hello
Can anyone tell me if you are able to sign a dividend for a director to another director.
Myself and a colleague set up a company whilst still working for someone else.
Now I am running the company and he is in background still working elsewhere.
At present there are 2 shares one for each director, but now he wants to sit back and let me get on with it.
He is expecting proceeds to go to me.
Any ideas?
Group: Construction industry accountants
The place to discuss accounting and tax issues specific to the construction industry, including CIS tax, VAT self billing and authenticated receipts.
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A couple of options
First he could transfer his shares to you. He is still a director but no longer has the right to a dividend.
Alternatively he could waive his right to dividends. however you have to be careful when you declare dividends that you only declare what you could pay both of you even if he isn't taking his.
I'm sure there are other options too ...