Getting paid on time!
Tips to ensure your invoices are paid on time. Getting invoices paid on time is always crucial for your business, but never more so than now! Having regular incoming payments
What is a dividend waiver?
A waiver is where one or more shareholders decide to waive their rights to be paid a dividend. Every shareholder is entitled to be paid in relation to the number of shares they hold.
To avoid the distribution being challenged by HMRC a number of procedures should be followed:
Dividend waivers are only effective if executed by deed because there is no consideration to support a contract.
Recent CIOT guidance explains that the drafting, preparation, and execution of deeds is a ‘reserved activity’ under the Legal Services Act 2007. This can only be carried out by an authorised or exempt person. As a result, all waivers/deeds must be drafted by lawyers.