Dividend and salary slips

[Scrag Meister]

I prepare a dividend voucher each time I pay myself a div.Scan it, store it and send it to my accountants.

Its the official document of the company authorising the dividend.

[xoggoth]

Are you advocating creating the documentation once HMRC comes looking???

Why not? There was an episode of Cheers where a female IRS inspector threatened to have that fat bloke's tax records forensically checked to see if he had filled them in after being told about the inspection if he didn't bonk her but that was probably even less credible than the idea that she would want him to anyway.

[northernladuk]

What in the living hell is a dividend form?

F**k knows. Never done one. Just sounded good like.

[MarillionFan]

I thought a dividend that was given without a signed form was an illegal one? Are you advocating creating the documentation once HMRC comes looking???

What in the living hell is a dividend form?

[malvolio]

Business Records Checks by HMRC

they are happenng, target is 20,000 a year. They carry fines. 40% of small business are deficient (well, according to HMRC...). You need to be able to prove all incomes and expenditures, so some kind of payroll reconcilaition is needed as part of that.

And has been said, a Dividend without supporting Minutes and Voucher , paid separately into each appropriate personal account is not a dividend but a bonus salary liable for PAYE and NICs.

[xoggoth]

No need for salary slips as such but think there are still requirements in respect of PAYE records. Check HMRC site.

[Clare@InTouch]

I thought a dividend that was given without a signed form was an illegal one? Are you advocating creating the documentation once HMRC comes looking???

No, I'm suggesting they are done as you declare a dividend each month/quarter/year, depending on how often you pay them.

[northernladuk]

I thought a dividend that was given without a signed form was an illegal one? Are you advocating creating the documentation once HMRC comes looking???

[Clare@InTouch]

I am required to keep documentation of the meeting minutes of the directors of my LTD Co, that declares the dividends and records the date of the meeting. I understand this date determines the personal tax year they fall into for self-assessment purposes, and 'not' when the payment is made.

That's correct, and it's not uncommon to find a dividend paid later than it's declared, therefore falling into a different tax year (potentially with some tax benefit).

OP - If HMRC look into tax returns they may ask to see vouchers that match amounts declared. It doesn't take long to do, just find a template and save a copy each month/quarter/year.

[CheeseSlice]

I am required to keep documentation of the meeting minutes of the directors of my LTD Co, that declares the dividends and records the date of the meeting. I understand this date determines the personal tax year they fall into for self-assessment purposes, and 'not' when the payment is made.

[Clare@InTouch]

You still need dividend vouchers, HMRC may ask to see them one day. Salary slips are optional, some people like having them in case they need to prove income.

What is the full text and context of the other sentence you mention below? Are you both equal shareholders, and have you received dividends in proportion to your holdings?

[ishacalls]

Hello

This is my first year contracting through a limited company and my accountant says that since this is a one man limited company i do not have to prepare any dividend vouchers/minutes. Also there is no requirement for salary slips. Is this true?

Also in the draft year end accounts which has my partner as secretary it is mentioned that "He has given up some share for full dividend". What does this mean?

Thanks
Isha