getting money from account

[Cooperinliverp00l]

I've set up a standing order for X amount going to my personal accountant at the end of each month. This covers me for both salary and expenses.

My accountant said come end of year once all final tax has been calculated and withdrawn i will then take the rest as dividends. This seems to work for me i have enough money in my personal account and business account and come next april i will have a final one-off lump sum that covers the previous 12 months.

If you don't feel confident with what your accountant is telling you then you need to move as these will be the people that will help you with your tax or help you get into the sh1t.

[xoggoth]

Transactions in bank account should all match up with something elsewhere in the accounts, either income, payments to director, tax etc. or expenses. That's what the balance sheet is useful for, to detect discrepancies. Timing and number is not really relevant as long as there are proper records of what's what.

[Bluebird]

If you take money as Expenses - you need reciepts to back it up.
If you take money as Salary - you need to record it and pay PAYE on it.
If you take money as Dividend - you need to back it up with Shareholder minutes and ensure you pay tax if you break the threashold.

You can only pay yourself dividends out of PROFIT - that is after VAT, Corp Tax, PAYE [ both employers & employees ] has been taken.

By the way, if your asking this sort of question - get a new accountant, or go brolly.

[[email protected]]

If you get a new accountant, l recommend you ask the question before signing up as to what experience they have dealing with contractors. The questions you are asking should present no problem for any accountant with experience in this field, and you need to be confident that your accountant is filing the neccessary returns when they should be to ensure you don't end up with late filing penalties arising on the company.

If you email me [email protected], I'd be happy to discuss further, or l can send you a comprehensive guide to running your ltd co to put your mind at rest.

[RightLaugh]

I've been told the best thing to do is:
1. expenses
2. monthly pay (£750 net)
3. dividends up to higher rate tax payer.
Leave a bit spare for interest on accounts.
The rest leave in account - after 2 yrs = taper.

If possible do 1 and 2 and after 2 yrs taper the lot.

However, taper is now gone and replaced with CGT. Might still be an advantage to leave it in the account and pay CGT instead of higher rate tax.
Is this true?

[TheFaQQer]

I've been told the best thing to do is:
1. expenses
2. monthly pay (£750 net)
3. dividends up to higher rate tax payer.
Leave a bit spare for interest on accounts.
The rest leave in account - after 2 yrs = taper.

If possible do 1 and 2 and after 2 yrs taper the lot.

However, taper is now gone and replaced with CGT. Might still be an advantage to leave it in the account and pay CGT instead of higher rate tax.
Is this true?

Sounds fair to me.