Director Dividends

[cyrilbiker2]

Are the major problems paying a monthly dividend to the directors of a Ltd company who are paid weekly PAYE?
Thanks for advice offered.

Cyrilbiker

[buildersmate]

This link may help you.
http://www.company-wizard.co.uk/guides/PAYE-Di vidends.aspx
The issue is NOT with the weekly payroll run under PAYE - but more to do with paying monthly dividends. Any employee (director or non-director) can be paid weekly or monthly. But to pay MONTHLY dividends requires a lot of company administration because you are going to have to record that proper meetings occurred with ditrectors to recommended declaring each dividend to shareholders out of company profits. It's more usual to pay dividends a maximum of twice per year.
Also directors of a company are not necessarily shareholders. And shareholders may not be directors.

[buildersmate]

True, still needs Board Minutes of the resolution to pay a dividend on each and every occasion, I reckon.

[cyrilbiker2]

Thanks once again Buildersmate for a useful piece of info. ALso to Zacmaster who has gussed correctly in that the three directors are the only shareholders. As long as I can convince them to keep some money back to pay the tax on the divis. It would seem to be an easy piece of bookwork and not the nightmare I was making it out to be. Cheers for advice.Cyrilbiker