Hi. Is a dividend paid after or before deprecation?
It's Franked Investment Income so it comes with a 15% Reducing Balance Method depreciation credit...……
If you're using the Straight Line Method you need to calculate a deferred dividend provision.
Yes if he is an accountant he ought to know better but there's no need to be sarcastic. The danger is that he may actually believe you.
I don't agree.
He's holding himself out as a 'partner' in an accountancy firm.
I think he deserves worse than I gave him, to be frank.
Is it a wasting dividend or a non-wasting dividend?
I pay my dividends on a Tuesday and my "deprecation" on a Thursday.
I know they keep changing these things, but presume gains/losses on disposals are still Fridays?
yes but get them in by 5pm, not 6pm. Section 28 has changed now.
EU working time directive issues there, we will see post Brexit is that changes or not.
Post edited for suggesting the OP's Ltd Company was dissolved.
Well spotted Mr A that I had the wrong Ian.
**Edited post to remove quoted reference to a different co**
This IJH is probably destined to be even less successful. Then again, these days, who knows?
The Companies Act 1985 section 263 states 'a company shall not make a distribution except out of profits available for the purpose'.
A company’s profits available for distribution are its accumulated, realised profits, so far as not previously utilised by distribution or capitalisation, less its accumulated, realised losses, so far as not previously written off in a reduction or reorganisation of capital.
IANAL, but I think that's still fundamentally right, even though sections 829 to 853 of the Companies Act 2006 apply to distributions made on or after 6th April 2008.
They look more like cabin crew than accountants with those uniforms to be fair.
I don't know. If I was in a meeting with them I could probably take the lady seriously. As soon as Ian came in I'd be looking for the hidden cameras.
Based on the replies, I'd say after. (They all, bar chicken farmer and jcace, who are way too sensible, fell into your deprecation trap.)
Agree with all the previous comments. By the way, I've recently started Red Leader Dentists, and there's a special promotion this month - book early!
Have you got an appointment at 2:30?
Absolutely. We do ask that clients bring any spare dentistry books they have, they're quite useful if, well, you know, I get stuck on any of the procedures.
Both. Unless that is all assets become fully depreciated, then it is always after.
Ah, these threads make all the trawling through Aweb worthwhile...….
It's one of those where most of you hopes it's not real - but part of you is praying that it is.
I even tried reverse image searching the OPs avatar
If a dividend is deprecated, it will eventually feel of little value, so won't feel the need to be paid much. Therefore you should be able to pay your dividends only the NMW after deprecation.
Are you a child playing at being an accountant?
A dividend is paid from retained earnings.
How did you get to the retained earnings figure?
But the honest answer is that you need to stop playing accountant. A one eyed chimp with learning difficulties that has had on or two lessons at AAT Level 2 could tell you this.
All you need is an Infinite Improbability Drive (Start with a nice hot cup of tea.....) and some monkeys will soon be queuing up with a script for Hamlet that they have just developed. (2 to the power of minus 6,502 and falling.)
Im now sure this is a wind up.