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Do-it-yourselfers need to be very careful when it comes to tax.

It’s particularly dangerous to change the shareholding of a company. You could lose the tax (imputation) credits the company has built up for distributing with company dividends unless you know how to do the job correctly.

This will mean you will pay more tax than you would otherwise have paid. If there are losses, you could lose the right to use them.

If you’re declaring dividends, you must follow the process correctly, both from a tax and a company law perspective. It’s not just a case of making a payment from your company and calling it a dividend.

Some people believe they can not only form their own companies, but also make them into “loss” companies (LTCs). They often get this wrong, to their later cost.