Dividend Vouchers don't tie Business statement Withdraws

[xpwistler]

Hi All,

I need support and explaination where I cannot understand, I am applying for ILR on Monday therefore need imediate help,

I have been contracting and withdraw random and ir-regular money each month from Business Account to Personal Account.

To prove this to Home Office I asked my accountant to generate the Dividend Vouchers, he has generated the vouchers which do not tie the amount I am withdrawing from business account, I queried this and he stated that withdrawls are calculated throughout the year they will not match the withdrawls you have made.

The best option we can offer, is to complete a set of management accounts for the period requested, which will show all the dividend information


I am not accountant so don't understand thier excuse or defination of divident different value?
Will the Management Accounts will suffix the dividend requirement?

Please help so I can speak him further.

Thanks

[Craig@Clarity]

There are two important dates on a dividend document. One is the dividend declaration date which is, in basic terms, when the director sits down and decides how much dividends to distribute to the shareholders. The second is the payment date which is when the director decides when the dividend should be paid at the earliest. In most cases, these two dates are the same but it doesn't necessarily have to be.

So, if the director decided that on day 1, they were going to declare a £1,000 net dividend in total to the sole shareholder, and the payment date was day 2, the director could in theory decide to pay £500 on day 2 and £500 on day 3. From a dividend point of view, £1,000 has been paid out in total either on or after day 2 (declaration date). However, there is no reason why there cannot be 2 dividend documents stating £500 declared and payable (small print - assuming there is sufficient profit in the company after taxes).

Question is why don't you create the dividend documents assuming you are the director of the company and it's you who has control when dividends are declared and paid. The management accounts would tell you how much profit is available to declare as a dividend. The accountant should be able to provide you with a dividend template to use and management account figures.

[northernladuk]

I am not accountant so don't understand thier excuse or defination of divident different value?
Will the Management Accounts will suffix the dividend requirement?

Thanks

Not being an accountant is no excuse for not understanding your finances properly. You and you alone are responsible for them at the end of the day. Accountants provide you a service but you have to sign off your accounts at the end of the day.

I would suggest you get a grasp of how your business runs before HMRC come a knocking. Blaming your accountant will not wash with them.

[NotAllThere]

I had to look it up, so for the benefit of others, ILR is "Indefinite Leave to Remain", for which I thought a certain level of English was required, but never mind.

To the OP. Declaration of a dividend is something distinct from payment of a dividend.

January - declare dividend for £1000
February - transfer £300 from business to personal account - first part of the dividend payment
March - transfer £514 from business to personal account - 2nd part of the dividend payment.
April - transfer £186 from business to personal account - 3rd part of the dividend payment.

What is so difficult to understand?