25/09/2026
💷 A healthy bank balance does not always mean a company can pay a dividend.
Before taking money out, directors need to check the profits available, allow for Corporation Tax and make sure the dividend is properly recorded. It is also worth knowing what the payment could mean for their personal tax bill, particularly with dividend tax rates rising for 2026/27.
I’ve put together a guide covering 10 things company directors should know before taking dividends:
If you’re unsure how much you can safely take from your company, feel free to get in touch
Limited company dividends: 10 things directors should check before taking profits, including available reserves, tax rates, paperwork and loan accounts.