I have a client who is one of two shareholders in a small private limited company with recent annual trading profit of 60,000 pounds. He is also in full time employment earning 110,000 pounds (this income is not from the ltd company). The two shareholder split is 80:20 in his favour. He does not take any salary from the limited company but wants to take his share of dividends as needed.
Question: can he use dividend waiver every year so that he does not take any dividend and make it more tax efficient?
could dividend not be declared and only take lower amount if needed?