Can I mix my salary with dividends?

[John Crowe]

so far I have been taking a directors salary each month (around 589), and then the dividends separately, as two sep transactions

But can I just take, say 1789, 589 salary 1200 dividends in one lump sum? would this cause accounting problems?

thanks

[northernladuk]

Have you actually asked the guy who's problem it might be????

(but he will say no as long as your paper work differentiates them the bank outgoings don't matter that much)

[Clare@InTouch]

You can, as long as you have the paperwork to support it.

Personally I'd advise you keep payments separate though, it makes it a lot easier to reconcile at year end, and a lot easier to prove what each payment is should HMRC ask.

[John Crowe]

You can, as long as you have the paperwork to support it.

Personally I'd advise you keep payments separate though, it makes it a lot easier to reconcile at year end, and a lot easier to prove what each payment is should HMRC ask.

what paperwork would that be?

[Wanderer]

The meeting minutes and dividend vouchers[/URL] that you have been producing when you declared your dividends because without these, they wouldn't be dividends.

[Wanderer]

Keep the two payments separate - it makes the accounting much clearer and it doesn't cost you anything. I set up a standing order for the salary payment and do the dividends as and when there are profits to pay out.

[Jeremiah@RHJAccountants]

Yes keep the salary and dividends separate and have dividend vocuhers and minutes prepared each time you take a dividend.

pretty much what has already been said

Also speak to you accountant about tax planning if you don't want to go above the higher rate tax threshold for personal tax

[MrRobin]

Also speak to you accountant about tax planning if you don't want to go above the higher rate tax threshold for personal tax

There's no danger of that if the OP is regularly taking only "589 salary 1200 dividends"

[Andrew at Boox]

Definitely separate

Definitely keep the transactions separate.

A few years back we assisted a contractor through an HMRC check. HMRC reviewed the contractor's personal bank statements (no idea how that got them!) and it was a real struggle convincing the HMRC officer that one transaction included 2 different types of payments. Happy to report we won in the end

Keep it neat.

[Jeremiah@RHJAccountants]

There's no danger of that if the OP is regularly taking only "589 salary 1200 dividends"

Agreed more for future reference if the OP decides to take more if he has the funds available.

Just something i have to always tell my clients it is January and i am in the self assessment mind frame right now!