I would appreciate some advice on a situation that has recently arisen regarding the declaration of a previous diavidend payment now deemed as illegal according to my accountant. I currently work as an IT Contractor using a limited company structure for tax reasons and have just completed my first year of contracting, so i am still learning the ropes. On completion of the last contract, i had declared a dividend for a sum advised by my accountant and all was well. I have since undertaken some training so that i can become more competative as work is still hard to come by and since paying for the training the company is now making a loss. As such the dividend is now delared illegal. My question is, would the dividend still be illegal if it was the training that caused the company into a loss and not the dividend?
Any advice would be appreciated.
TIA Mark