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Dividend Availability

**Limited Companies Only**


Xenon Connect’s Dividend Availability feature provides real-time insight into the maximum amount that can currently be taken out by shareholders, through dividends.

The calculation provides an up-to-date snapshot of the company’s profit reserves, after considering an estimate of corporation tax (where required) and dividends taken to date.


Corporation Tax Estimate

In order to accurately assess the profit reserves available to be taken as dividend, a corporation tax estimate in respect of the current (and potentially the previous 2 years if it has not been adjusted in Xero yet) must also be considered.

Xenon Connect’s Corporation Tax Estimate feature is able to provide a good estimate of corporation tax payable for the current and previous 2 years.

Include any/all of the 3 years’ corporation tax estimates in the dividend availability calculation by clicking on the edit icon next to the appropriate year (see image above).

The following popup will appear, which will allow you to choose one of the following options for that particular financial year:

  • Include an estimate of corporation tax charge – include the automatic calculation of corporation tax for this year
  • Override estimate of corporation tax charge – input your own value for corporation tax
  • Don’t include an estimate of corporation tax charge – select this option if you have already provided for corporation tax for this year within Xero already – for example by recording a journal for the corporation charge

Xero Dividend Accounts

Within Xenon Connect’s Settings area, you are able to select which Xero accounts represent dividends taken. Multiple accounts can be selected as appropriate.