Hi

Can anyone help please?

I am about to stop trading and go travelling abroad for 12 months (have worked Very hard over the last 24!). Can I still pay myself dividends out of the reserves in the company? Can I pay myself a salary?

I have looked on the revenue website, the companies house website and a business website, they all have links to lots of info especially about the new act coming into force, but I am having trouble with this one.

Also if I rent my house out for ?000 per annum do I have to report that on a tax return?

Thanks.:|
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if you're a shareholder you can pay yourself dividends as long as the company has the cash to pay it.
what would a salary be for? while travelling i suspect you son't be doing a lot work for the company.

if you did rent your house as it is additional income you would have to declare this to HMRC
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The amount of dividends you can pay is the amount of net profit after tax in that financial year plus any retained earnings from previous years.

The amount you can pay in dividends is limited to those retained earnings and not the cash resources of the company.

You can pay yourself a salary as that is your deciision as a director but if that produces a loss then it would reduce the amount that couild be paid in dividends.

Normally you would declare the rental income on your tax return although if you are abroad for more than 12 months there are rules on residency and domicile which probably won't affect yourself but could do depending on the circumstances.

Might be a consideration for you to rent the house to your company at a low rent and then allow the company to rent out the house to a tennant to produce a profit for the company from which you might then be able to withdraw a minimum salary below the tax threshold which would also reduce the corporation tax liability.
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