Hi there,
I am contractor working through my own Limited company setup. I and my spouse both are 50% (one share each worth 1£) share holder in my company and I am the Director. My accountant has recently done the accounts for company's first account period ended 31/03/2011.
During this accouting period I have been paying myself salary and dividend every month. For all X amount of dividends I have paid everything has gone to my personal bank account. For this accounting period I haven't paid anything to my spouse as dividend/salary as I needed to achieve certain threshold level of income. I asked my accountant whether it is ok or not and he said that it's fine. He said company can pay the dividend just to you for the period and you could then document this as the minutes of a meeting for a company. From next accounting period I would be paying equal dividend to me and my spouse.
We haven't submitted accounts yet to HMRC or Companies House, so just wanted to check whether are there any issues with above sort of practice or not? Advice pls.
Regards
I am contractor working through my own Limited company setup. I and my spouse both are 50% (one share each worth 1£) share holder in my company and I am the Director. My accountant has recently done the accounts for company's first account period ended 31/03/2011.
During this accouting period I have been paying myself salary and dividend every month. For all X amount of dividends I have paid everything has gone to my personal bank account. For this accounting period I haven't paid anything to my spouse as dividend/salary as I needed to achieve certain threshold level of income. I asked my accountant whether it is ok or not and he said that it's fine. He said company can pay the dividend just to you for the period and you could then document this as the minutes of a meeting for a company. From next accounting period I would be paying equal dividend to me and my spouse.
We haven't submitted accounts yet to HMRC or Companies House, so just wanted to check whether are there any issues with above sort of practice or not? Advice pls.
Regards
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