CORONAVIRUS:   Lawson-West Solicitors is ‘Open for Business’ and here to help you with your legal needs.

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Lawson-West helping to ensure business owners know about dividends

As a business owner, do you pay yourself and others by way of a dividend? If so, do you know the rules? It was recently reported in the news that the fashion giant Next had paid some dividends in contravention of the rules in the Companies Act.  However, the consequences of their mistake are likely to be less serious than for a normal private limited company.

According to the Leicester Mercury, a ‘procedural oversite’ was made by Leicester firm Next in relation to the payment of their dividends. The error occurred on three occasions, however a spokesperson for Next stated that the errors are historical and will not have any effect on their financial landscape for 2016.

Owners of private limited companies are often paid partly by salary and partly by dividend as this is more tax efficient than a normal salary. However you need to be careful in doing this, making sure that there are sufficient profits to cover the proposed dividends and also that the relevant paperwork, such as board minutes, is in place and filed correctly. If the company gets into financial difficulties, then, as a director, you might find yourself personally liable to repay such dividends.

For more information please contact the Lawson-West Commercial team on 0116 212 1000.

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Coronavirus:  We are pleased to announce we are Open for Business

Even during Leicester’s most recent, extended lockdown, you can be assured that it is ‘Business as Usual’ at Lawson-West and we're here to help you with your legal needs. 

We are driven by our commitment to help others. We are here. For you.

At this time, please contact us by telephone, website enquiry or email.
We’re here to help:

Leicester:
4 Dominus Way, Meridian Business Park, LE19 1RP           Tel: 0116 2121000

Wigston:
44 Long Street, Wigston, LE18 2AH                                              Tel: 0116 2121080

Market Harborough
Millers House, Roman Way,
Market Harborough, LE16 7PQ                                                        Tel: 01858 445480

Website:     www.lawson-west.co.uk

Email:           mail@lawson-west.co.uk

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