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Client that's never withdrawn money from company

Director with no income would like to withdraw money for the first time from their business account.

Hi All

Is it possible to take dividend out retrospectively if the company accounts have not yet been filed?

Many thanks

J

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By Mr_awol
18th Sep 2018 00:14

First you need to jump in your car and accelerate until you reach 42.944 yards per second (preferably along a jetty)

At this point one of two things will happen. Either will do

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18th Sep 2018 00:52

Quote:

Could you please suggest the most tax efficient way for him to withdraw money from their business bank account?

Definitely worth the individual speaking to an accountant.

Failing that, there are some very creative people who post on this site:

https://www.ukbusinessforums.co.uk/forums/accounts-finance.55/

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18th Sep 2018 00:59

His first mistake was starting his business without seeking proper advice from a competent accountant. I think he needs to correct that soon. Third time lucky.

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18th Sep 2018 06:50

Were you a nurse earlier? And had Peter also posted anonymously, I would have assumed he'd previously had a year end of 31 March.

Or did I miss a full moon last night?

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By Matrix
18th Sep 2018 07:07

You will need to prepare calculations on the optimal salary/dividend combination maybe with a higher salary given his age. Dividends would depend on distributable profits and not the amount in the bank.

You can't change last year so he has wasted his allowances.

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18th Sep 2018 08:29

The one you were looking for was, tax planning.
A bit like family planning, best done in advance.

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By DJKL
18th Sep 2018 10:31

As an aside, are you happy this non pension receiving, non income, director could have existed for two years with no income?

Maybe his spouse supports him, maybe he is asset rich and has been using his savings, but given circumstance I think I would want a file note demonstrating I had considered his circumstances given he appears to have no visible means of support (unless there are visible means of support)

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18th Sep 2018 11:56

Take advantage of thresholds ?

Which threshold did you have in mind ?

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By Ruddles
to lionofludesch
18th Sep 2018 12:03

I thought it was pretty obvious - his company needs to make a pension contribution of £1.03m

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