Learn why dividends are based on distributable reserves, not just cash in the bank, and how this impacts dividend legality.
Discover how to determine true dividend capacity by considering retained profits, tax provisions, prior losses, and previous dividends.
Assess business liability, cashflow stability, and financial responsibility before making dividend decisions.
Dive into the World of Dividend Distribution
Explore the critical distinctions between profit, post-tax profit, retained earnings, and distributable reserves. Understand the impact of Corporation Tax on dividend decisions and learn where to find the real numbers for accurate assessments.
Meet Grace Bartley BSc (Hons), ACCA
Grace is here to guide you through the intricate world of dividend distribution. With her expertise, you'll gain a structured, evidence-based approach to ensure every dividend is legally justified and financially sustainable.
What People Are Saying
Discover how our product is transforming dividend decisions and ensuring financial compliance.
"We had strong cash in the bank and assumed we were fine to take dividends. This guide exposed how wrong that thinking was. Once we calculated the actual reserves, we realised we had already taken more than we legally could. It was a serious wake-up call — we’ve completely changed how we approve dividends."
Managing Director, Vertex Property Group Ltd
"The profit vs reserves section hit hard. We were profitable on paper, but after factoring in tax and prior losses, our dividend capacity was far lower than expected. This guide helped us catch the issue early and avoid what could have become an illegal dividend situation."
Finance Director, Elevate Consulting Solutions Ltd
"We had been relying on bank balance and making decisions quickly without fully reviewing the numbers. This guide showed how dangerous that approach is. Once I understood the risk of illegal dividends and personal exposure, we put proper checks in place immediately."
Founder & Director, Urban Build & Developments Ltd
"We had strong cash in the bank and assumed we were fine to take dividends. This guide exposed how wrong that thinking was. Once we calculated the actual reserves, we realised we had already taken more than we legally could. It was a serious wake-up call — we’ve completely changed how we approve dividends."
Managing Director, Vertex Property Group Ltd
"We had been relying on bank balance and making decisions quickly without fully reviewing the numbers. This guide showed how dangerous that approach is. Once I understood the risk of illegal dividends and personal exposure, we put proper checks in place immediately."
Founder & Director, Urban Build & Developments Ltd
"The profit vs reserves section hit hard. We were profitable on paper, but after factoring in tax and prior losses, our dividend capacity was far lower than expected. This guide helped us catch the issue early and avoid what could have become an illegal dividend situation."
Finance Director, Elevate Consulting Solutions Ltd
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