Tax expert warns of the danger of illegal dividends.

Are your dividends actually legal? Simon Sweetman, has highlighted the importance of setting up a mechanism to ensure that SME owners process their dividends properly for the purposes of the Companies Act and HMRC.

Speaking at Tuesday’s Accountingweb tax event in Southampton, the regular tax contributor to Accountingweb and spokesman to the Federation of Small Business, pointed out that HMRC may be looking for other ways to cast its net, if we assume that it will not be successful with its current endeavours concerning the settlements legislation.