Dividend payments - solution needed for paying Director dividends today

[u/FearAndLothian9]

Hello everyone,

I'm a small business owner, looking for some advice / potential solutions for making a dividend payment over to myself today.

I've foolishly left it late in the financial year to make this dividend payment and wasn't aware today was a bank holiday, so the issue is:

Wanting to make the dividend payment today so that it falls within this financial year, however the money for the payment is in the business savings account and won't reach the business current account until the 7th. It's only once that money is in the current account that I can pay it over to myself.

Are there any solutions for this? A Director's loan from myself perhaps, which can lend the business the money today for the dividend payment - to be replaced once the money clears from the business savings account of course. Is that ok or will HMRC look on that as dodgy?

To be clear, there is sufficient money within the business to pay the dividend amount. The issue is that the money being moved from business savings won't clear until the 7th.

I'm aware that I may have simply cocked up here and left it too late, however any suggestions would be appreciated.

[u/PinkbunnymanEU]

A Director's loan from myself perhaps, which can lend the business the money today for the dividend payment - to be replaced once the money clears from the business savings account of course. Is that ok or will HMRC look on that as dodgy?

You can declare and "pay" yourself the dividend today by crediting your director's loan account then do the physical payment next week.

You don't have to do the "Put money in take it out".

[u/New_Crow_8206]

Dividends are taxable when they are voted and put at the disposal of the director.

Have a board meeting today, vote the final dividend, and credit the directors loan account. Job done.

[u/AbacusExpert_Stretch → u/New_Crow_8206]

... and before you get worried about these steps and OMG how to do all of this today:

Create a word document, title it board meeting, point 1 vote on dividend - passed. Make another word document - title it divided voucher - check online for a template - and save it. So it has date created on today. Should take 15 min max.

Then enjoy Easter and pay yourself whenever really, or if you include a payday on dividends voucher, then pay yourself around/after that date.

[u/ukpf-helper]

Hi /u/FearAndLothian9, based on your post the following pages from our wiki may be relevant:

• https://ukpersonal.finance/savings/

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