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Hi.  Is a dividend paid after or before deprecation?

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By Mr_awol
21st Oct 2019 12:29

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.

Thanks (7)
Replying to Mr_awol:
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By chicken farmer
21st Oct 2019 12:35

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.

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Replying to chicken farmer:
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By The Dullard
21st Oct 2019 12:44

I don't agree.

Thanks (3)
Replying to chicken farmer:
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By Mr_awol
21st Oct 2019 13:18

He's holding himself out as a 'partner' in an accountancy firm.

I think he deserves worse than I gave him, to be frank.

Thanks (7)
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By The Dullard
21st Oct 2019 12:34

Is it a wasting dividend or a non-wasting dividend?

Thanks (5)
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By Accountant A
21st Oct 2019 12:37

I pay my dividends on a Tuesday and my "deprecation" on a Thursday.

Thanks (8)
Replying to Accountant A:
Hallerud at Easter
By DJKL
21st Oct 2019 12:47

I know they keep changing these things, but presume gains/losses on disposals are still Fridays?

Thanks (4)
Replying to DJKL:
By ireallyshouldknowthisbut
21st Oct 2019 16:03

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.

Thanks (3)
By ireallyshouldknowthisbut
21st Oct 2019 16:05

Post edited for suggesting the OP's Ltd Company was dissolved.

Well spotted Mr A that I had the wrong Ian.

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Replying to ireallyshouldknowthisbut:
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By Mr_awol
21st Oct 2019 16:16

**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?

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By jcace
21st Oct 2019 13:23

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.

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Replying to jcace:
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By Tax Dragon
21st Oct 2019 14:53

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.

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By JCresswellTax
21st Oct 2019 14:06

They look more like cabin crew than accountants with those uniforms to be fair.

Thanks (4)
Replying to JCresswellTax:
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By Mr_awol
21st Oct 2019 15:17

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.

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By Tax Dragon
21st Oct 2019 14:53

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.)

Thanks (1)
By Red Leader
21st Oct 2019 15:05

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!

Thanks (1)
Replying to Red Leader:
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By Mr_awol
21st Oct 2019 15:15

Have you got an appointment at 2:30?

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Replying to Mr_awol:
By Red Leader
21st Oct 2019 15:26

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.

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RLI
By lionofludesch
21st Oct 2019 15:41

Bless me.

Unbelievable.

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Lone Wolf
By Lone_Wolf
21st Oct 2019 17:25

Both. Unless that is all assets become fully depreciated, then it is always after.

Thanks (2)
Caroline
By accountantccole
21st Oct 2019 17:53

Ah, these threads make all the trawling through Aweb worthwhile...….

Thanks (1)
Replying to accountantccole:
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By Mr_awol
21st Oct 2019 18:06

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

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By JDBENJAMIN
21st Oct 2019 23:00

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.

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By JDBENJAMIN
21st Oct 2019 23:22

Are you a child playing at being an accountant?

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By mrme89
22nd Oct 2019 09:37

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.

Thanks (3)
Replying to mrme89:
Hallerud at Easter
By DJKL
22nd Oct 2019 10:21

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.)

Thanks (1)
By JCresswellTax
22nd Oct 2019 16:30

Im now sure this is a wind up.

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