new to contracting and dividends

[CryingSheep]

Looking at their website they off Freeagent as a tool so absolutely nothing for them to do. They will advise the OP what the most efficient salary/dividend threshold is but it's up to the OP to divi what he wants/needs. It's not for them to govern or manage his thresholds so doubt it's that.

You still need to produce minutes and insert the data in the software... I know isn't much work, but still more if you do it monthly vs quarterly.

[northernladuk]

You still need to produce minutes and insert the data in the software... I know isn't much work, but still more if you do it monthly vs quarterly.

Erm. No its not and no you don't. Takes seconds once your bank feed has updated. Do you use FA?

[WordIsBond]

Agree with everything everyone said. But, if the accountant really has a problem with it and you don't want the hassle of arguing with him, take a director's loan in month one, pay a dividend in month two big enough to live on for three months, and pay back your director's loan. Then, take a dividend every two months.

If he's got a problem with dividends every two months, maybe get another accountant....

[Lance]

Agree with everything everyone said. But, if the accountant really has a problem with it and you don't want the hassle of arguing with him, take a director's loan in month one, pay a dividend in month two big enough to live on for three months, and pay back your director's loan. Then, take a dividend every two months.

If he's got a problem with dividends every two months, maybe get another accountant....

THIS ^^^^^^

If the accountant says he doesn't like it tell him you'll bring it up at the next monthly board meeting, where you agree to issue another dividend and choose to igmore the accountant.
Send him the minutes and the dividend certificate and ask him if you should find another accountant who will do what he's instructed.
His job is to advise you. You don't have to take his advice, especially when it's BS.

[highlandspring]

Loans

You can setup a Directors Loan account and draw money against that, declaring a dividend each quarter or at year end to clear it.

There is no need for a formal dividend declaration each month, as you need to work out your profit to be sure you can legally declare any divi.

[northernladuk]

You can setup a Directors Loan account and draw money against that, declaring a dividend each quarter or at year end to clear it.

There is no need for a formal dividend declaration each month, as you need to work out your profit to be sure you can legally declare any divi.

That's very complicated for a newbie. Ot really the way forward I would have thought.

The rules have changed around DL accounts so get it wrong and you'll have to pay the whole loklt as income.

[TheCyclingProgrammer]

You can setup a Directors Loan account and draw money against that, declaring a dividend each quarter or at year end to clear it.

There is no need for a formal dividend declaration each month, as you need to work out your profit to be sure you can legally declare any divi.

This is a potentially risky approach - particularly clearing it annually. If your DLA exceeds £10k then you need to pay interest on the balance or pay tax on the BIK. If you forget to clear it before the year end then it needs to be shown in your accounts and risks a s455 charge if it remains outstanding after a further 9 months.

Far simpler to just declare a dividend quarterly and be done with it.