How often can, or should, I declare a dividend?

How often can, or should, I declare a dividend?

Limited company consultancy operator asks:

How often can/should I declare dividends from my limited company?

Acumenica answers:

It is the director's responsibility to determine the frequency of dividends. While it is most common to declare dividends quarterly, there is no reason why you cannot declare monthly dividends, if preferred. The main points to consider are: 

  • You must not declare dividends for more than the company's retained profit at any given time.
  • You must make dividend to payments to all shareholders at the same time, in proportion to the shareholdings (with the exception of alphabet shares).
  • dividends are not taxed at source so you must consider the personal tax implications of declaring a dividend.
  • Always make sure you prepare the correct paperwork