Originally posted by d000hg
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IMV with a 31 March year end, cutting off dividends at 31 March has a lot of merit, and is probably common place, save for the times, and they do come up, where you explicitly want to use 1 to 5 April, eg you want to use tax allowances up but equally make the year end look stronger (less likely for a contractor, more likely for a more complex business).
The situation the OP describes used to be fairly common a couple of decades back (feeling my age), but its now out of favour, except for the messy cases where clients use company bank account as piggy bank with contemporaneous allocation to dividend etc. Back in the midst of time, there used to be three ways for directors remuneration to be taxed - actual, accounts or prior year - it seems quite unbelievable now - but the point is, there historically was fluidity in how dividends and salary were linked from accounts to personal returns.
All that said, OP is right to query it an be concerned.
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