Ltd Company Dividends

[Wesdev]

Guys,

This is my 1st years as a Ltd Company and i was wondering if in your opinion if i'm running this correctly.

This is what i do

PAYE £1000 pm pay tax on this every month (circa £347)
Divi £2000pm

After paying my VAT per Quarter i move what ever is left over in the business account to the Business Deposit account.

I travel 130miles by car every day. Although I dont keep fuel receipts. Should I?

Member of PCG (£220), Microsoft Partnership (£199).

Bought IT Equipment - Laptop, Desk, Chair this year: so can i claim these as an expense?

Year end is nigh, just wondering if thats ok?

[firework]

Not an expert on the best way to split salary and dividends if you are outside IR35 so I can't advise on these, but I am a chartered accountant and would advise the following re: your other queries:

PCG and Microsoft costs can be claimed as business expenses. Keep receipts / invoices.

Fuel receipts are unnecessary. The Inland Revenue allows you to claim 40p per mile for travel to a temporary workplace (temporary defined as lasting, and expecting to last, less than 2 years).

If you paid for the laptop, desk and chair out of your personal cash, you can take cash from the company bank account to pay for them - however, they cannot be claimed as expenses (i.e. they are not tax deductible) as they are capital items. They need to be treated as capital items in the company accounts, and depreciated over a certain number of years (usually 4 years). Writing down allowances can be claimed to reduce your tax. Your accountant will be able to advise further on this.

[Archangel]

Guys,

This is my 1st years as a Ltd Company and i was wondering if in your opinion if i'm running this correctly.

This is what i do

PAYE £1000 pm pay tax on this every month (circa £347)
Divi £2000pm

After paying my VAT per Quarter i move what ever is left over in the business account to the Business Deposit account.

I travel 130miles by car every day. Although I dont keep fuel receipts. Should I?

Member of PCG (£220), Microsoft Partnership (£199).

Bought IT Equipment - Laptop, Desk, Chair this year: so can i claim these as an expense?

Year end is nigh, just wondering if thats ok?

Some claim (with no evidence I might add) that paying a monthly dividend is suspect. Can't you build up £6k and then start paying quarterly?

Are you claiming for the fuel, or claim a travelling allowance (40p per mile?) if the latter then just keep a log of your journeys, if the former then you need receipts and to put the amount on your self-assessment and on the P11D the company will produce at yearend.

Every payment received and outgoing transaction from the company need recording (a spreadsheet will do) so that at any time the directors can see the state of the company to ensure that any dividends can be paid out of profit (no profit, no dividends). This spreadsheet can be used by an accountant to produce the yearend profit and loss report.

Each dividend paid must be decided at a board meeting and documented. A tax voucher must be produced for each share holder for each dividedn paid.

HTH but others may be along to add more...

[Sockpuppet]

Some claim (with no evidence I might add) that paying a monthly dividend is suspect. Can't you build up £6k and then start paying quarterly?

Monthly divs are fine, esp with £12k p.a. salary.

Are you claiming for the fuel, or claim a travelling allowance (40p per mile?) if the latter then just keep a log of your journeys, if the former then you need receipts and to put the amount on your self-assessment and on the P11D the company will produce at yearend.

You will need reciepts if you intend the claim the VAT. On £130 miles a day you are looking at £2.60 a day you could reclaim.

Each dividend paid must be decided at a board meeting and documented. A tax voucher must be produced for each share holder for each dividedn paid.

Not if paid electronically.

Edit: Only vouchers are exempt on the electronic payment, not the board minutes.

[Wesdev]

Monthly divs are fine, esp with £12k p.a. salary.



You will need reciepts if you intend the claim the VAT. On £130 miles a day you are looking at £2.60 a day you could reclaim.




Not if paid electronically.

I will prob claim the 40p a mile for the 1st 10kmiles then i forget how much it is thereafter.

Divs are paid electrionically which statements from the Business Bank can be downloads and catelog all incoming and out goings. The 1k PAYE has this as a description and the 2k div has Company Div as a description when it shows in a personal bank account and on the statement. My Accountant does the meeting and dividend vouchers on the 28th every month.

Is this ok?

I did rent for a while, as orginially i 'lived' in Northern Ireland but in March bought a house with my girlfriend. So i have all the rent and tennancy agreements. What is subsistence charged at? Is it more if your are out of the house 12 hours a day?

All help is greatly appreciated fellas...

[Sockpuppet]

Subsistance has been done alot and a search will give you the answers quicker than me re typing them.

The rest looks ok. At least you have an accountant so are pretty well there.