I'll get straight to the point.
Started the ltd co last year and ran for 8 months as sole director (business started 2 months after co. opening) taking dividends as necessary.
At Christmas I brought on my wife as a director with a relative share ratio and then split the following dividends as such.
However I have now received both mine and my wife's Self Assessments from the accountant and they have taken the company's total dividends and split as the share ratio above.
This means my wife will be declaring more shares than she has actually had and I will be declaring less.
I appreciate that from a pure tax income this won't make a difference to HMRC but to my simple logic why wouldn't we just declare the dividend payments exactly as they were made as this won't take me or my wife into higher tax brackets?
Hopefully all that makes sense but having asked the accountant a few times about why they have done it this way I can't seem to make sense of it so any help is welcome as this is my first year of operating and I want to make sure the t's and i's are sorted.
Thanks in advance.
Started the ltd co last year and ran for 8 months as sole director (business started 2 months after co. opening) taking dividends as necessary.
At Christmas I brought on my wife as a director with a relative share ratio and then split the following dividends as such.
However I have now received both mine and my wife's Self Assessments from the accountant and they have taken the company's total dividends and split as the share ratio above.
This means my wife will be declaring more shares than she has actually had and I will be declaring less.
I appreciate that from a pure tax income this won't make a difference to HMRC but to my simple logic why wouldn't we just declare the dividend payments exactly as they were made as this won't take me or my wife into higher tax brackets?
Hopefully all that makes sense but having asked the accountant a few times about why they have done it this way I can't seem to make sense of it so any help is welcome as this is my first year of operating and I want to make sure the t's and i's are sorted.
Thanks in advance.
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