You can draw dividends from your company at any frequency across the year, as long as your company has sufficient distributable profits. Payments are typically made on a monthly or quarterly basis. A common concern among contractors we work with is that HMRC may regard frequent payments as disguised salary. To keep in the good books of HMRC, ensure that you keep clear records and have the right paperwork in place. Keep your salary and dividend payments separate, as this leaves a clear audit trail. In doing so, you’ll be able to prove that nothing is amiss, and that you’ve gone by the books should HMRC decide to launch a tax enquiry. Do note that dividends can’t be drawn from contracts that fall within IR35. For further information on off-payroll working rules and what it means for contractors, refer to our comprehensive guide on IR35.