Folks.
I'm a 50% shareholder in a limited company, my co-director / partner retains the other 50% shareholding, this past year and a half have been particularily challenging, we both took a reduction in salary totalling 50% gross over the past 18 months.
Our year end is in December and with all our efforts at managing costs it appears we will make a modest profit, my question is can we pay dividends to the shareholders and if so what are the tax implications, I understand this may be better than drawing increased salary with respective tax and other implications. you will note the dividends will be paid to the co-directors i.e one and the same people ?
Ta in advance.
I'm a 50% shareholder in a limited company, my co-director / partner retains the other 50% shareholding, this past year and a half have been particularily challenging, we both took a reduction in salary totalling 50% gross over the past 18 months.
Our year end is in December and with all our efforts at managing costs it appears we will make a modest profit, my question is can we pay dividends to the shareholders and if so what are the tax implications, I understand this may be better than drawing increased salary with respective tax and other implications. you will note the dividends will be paid to the co-directors i.e one and the same people ?
Ta in advance.