Originally posted by northernladuk
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new to contracting and dividends
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"The boy who cried Sheep" -
Originally posted by CryingSheep View PostYou 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.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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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....Comment
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Originally posted by WordIsBond View PostAgree 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....
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.See You Next TuesdayComment
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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.Comment
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Originally posted by highlandspring View PostYou 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.
The rules have changed around DL accounts so get it wrong and you'll have to pay the whole loklt as income.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by highlandspring View PostYou 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.
Far simpler to just declare a dividend quarterly and be done with it.Comment
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