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Dividend scenario 7

Expenses paid by the director personally:

Let’s say you record company expenses of office rent at £2,000.

You decide to pay for this out of your personal funds and the money comes out of your personal bank account, but b
ecause Dividend amounts are calculated based on expenses recorded (not whether or how they are paid) the "Maximum Dividend Available" will be reduced by £2,000 but your company bank account will be unaffected and will show a balance £2,000 higher than the maximum dividend available.

Your "Director’s Loan Account" will still reflect the fact that you paid for the expense personally and the company will owe you that £2,000.

This is part of a troubleshooting series on 'Why does the maximum dividend available not match my bank balance?'

Last Updated: 13 Nov 2019 11:58AM GMT

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