Getting your dividend documentation correct

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Company law says that once you’ve established the availability of distributable profits you can pay a dividend.   The Taxman can challenge payments described as dividends if they have not been declared and paid in accordance with company law. Indeed, if 
the directors allow dividends to be paid when there are not enough retained profits it will be treated as illegal.  Protect yourself by recording the directors’ proper consideration on a Distributable Profits Board Minute. E-mail Paul Woodcock for a template.

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