Reply to: Dividends across 2 tax years.

[cwah]

Not possible if you want to pay your wife on April 4th and not take the dividend yourself until April 6th.

Ah I see... so its not possible to pay different amount of dividend depending on the shareholder....

Makes sense now.

[eek]

Then just declare when you pay dividend? Simple.

Not possible if you want to pay your wife on April 4th and not take the dividend yourself until April 6th.

[cwah]

You declare it - what happens if you don't pay it immediately? the company will have £x in a dividend payment that it owes a director and that money has to be accounted somewhere which would be record as a loan from the director to the company.

Then just declare when you pay dividend? Simple.

[eek]

Yes but what does that have to do with dividend? You declare and pay the dividend and thats it

You declare it - what happens if you don't pay it immediately? the company will have £x in a dividend payment that it owes a director and that money has to be accounted somewhere which would be record as a loan from the director to the company.

[cwah]

The Director Loan account can go both ways, it may be overdrawn when the director owes the Company money, it may be in credit if the Company owes the Director money or the Director has lent the Company money.

Yes but what does that have to do with dividend? You declare and pay the dividend and thats it

[eek]

Why would there be a loan account to pay dividend??

The Director Loan account can go both ways, it may be overdrawn when the director owes the Company money, it may be in credit if the Company owes the Director money or the Director has lent the Company money.

[cwah]

Director Loan Account

Why would there be a loan account to pay dividend??

[northernladuk]

Maximise his take home income in a legal way, can't knock anyone for that

No but can when they are just tying to guess work arounds without speaking to experts like accountants and trying to fully understand how it works before they ask.. Like Pscont never did...

[eek]

Maximise his take home income in a legal way, can't knock anyone for that

It isn't his take home pay that he has an issue with - he's trying to use his wife's spare allowance without impacting his.

And it's only an issue because he didn't ask his accountant (as he didn't have one) before he set things in motion.

[pr1]

Care to explain what you are trying/hoping to do?

Maximise his take home income in a legal way, can't knock anyone for that

[eek]

Care to explain what you are trying/hoping to do?

A quick glance at his previous posts will tell you all you need to know.

[WTFH]

Looks like another of my plans is not feasible....

Care to explain what you are trying/hoping to do?

[eek]

What is the DL account? Where can I check it?

Director Loan Account

[cwah]

The dividend is taxable when it is first made available to the shareholder (i.e., declared as being payable). The date the documents are prepared doesn’t matter. The date the payment is made doesn’t matter. What matters is the date that the documents declare the dividend as being payable. For accounting purposes, once that date is reached, it appears on the DL account until the payment is made. Interim dividends are taxable on payment date, but you cannot choose two separate dates for two shareholders holding the same class of shares, so that won’t work either. In summary, no, your plan won’t work.

What is the DL account? Where can I check it?

[MeIsMark]

Thanks for the help.

Looks like another of my plans is not feasible....