Leaving tax money in your company account...

[SallyAnne]

I tend to listen to the people who tell me it's OK to do what I do and ignore the rest

Are you me?

[BA to the Stars]

Hi SA and a happy new year.

I receive payment from the client on a weekly basis and ensure that I transfer a % of that into a deposit account in the company name and do the same for the VAT. This is all done by standing order so the money goes over automatically.

I have just had a rate rise and also do not expect the same level of expenses this year so I will need to increase the standing order, however I know that it is safely put aside for when I need to pay.

Just treat it as though that element of the turnover isn't yours (it belongs to HMRC and out of the kindness of your heart you have put it aside for them until they ask for it).

[Xenophon]

AFAIK dividend frequency has no bearing on anything, providing the funds are there and allowance is being made for tax bills etc. as discussed earlier.

Clearly, it is more elegant to plan things out and ultimately perhaps get to the annual dividend payment that TLG and dude69 describe. I feel as if I have done well to last 2-3 months and that doesn't happen very often...

[Jog On]

Are you me?

I'm sure there are lots of us - if we shout loud enough we might be heard

[SallyAnne]

Hi SA and a happy new year.

I receive payment from the client on a weekly basis and ensure that I transfer a % of that into a deposit account in the company name and do the same for the VAT. This is all done by standing order so the money goes over automatically.

I have just had a rate rise and also do not expect the same level of expenses this year so I will need to increase the standing order, however I know that it is safely put aside for when I need to pay.

Just treat it as though that element of the turnover isn't yours (it belongs to HMRC and out of the kindness of your heart you have put it aside for them until they ask for it).

This is sooooo organised!!!!

So what do you do when you need extra cash? Does the money in the other account not make any "take me take me" noises?

[BA to the Stars]

This is sooooo organised!!!!

So what do you do when you need extra cash? Does the money in the other account not make any "take me take me" noises?

I just have to stick my fingers in my ears and go lalala I can't hear you. Tough, especially as I am moving home!

Extra cash, I use an interest free balance transfer on the credit card, but again, I have to ensure that I then make sure that I pay myself a dividend to cover this when it is due.

[SallyAnne]

I just have to stick my fingers in my ears and go lalala I can't hear you.

Just spotted your location - say no more

[tay]

Why would they be?

I said maybe, the fact you are so disorganised with your paperwork and you have been investigated twice.. would lead to the conclusion that maybe, just maybe, your name is more likely to picked up further investigation due to other lapses you have forgotten all about....

[BA to the Stars]

Just spotted your location - say no more

Aye, it does help tha knows

And being a former bank manager also breeds a certain tight fistidness

[tay]

And being a former bank manager also breeds a certain tight fistidness

Fiscal prudence.