Hello more experienced members
I was wondering what issues we facing and what paperwork and at what stage/dates we need to have on file:
1. client does the books on Excel or paper - takes interim dividends from bank account during the year. End of year we do the accounts, figure out what the real dividend is and we do a dividend voucher. if he has taken out too much we tell him to put it back
There is no records of a director loan account with all the entries in during the year and then offset at the year end with the dividend payment
- Do we need to construct such a director loans account with itemised entries for each of his withdrawals which are interim dividends or not? We can figure out the balance quickly in Excel without having to list stuff nicely. (we use VT accounts)
2. client does the books in accounts package
- do they need to use the director's loan account? or can that be left for the year end when we go in an do our magic and see then what the real figure for dividends should be. Some software makes it easier than other for clients to do this.
In both cases - Do we need a paper to say they take an interim dividend (and with what date) or just the year end dividend voucher and minutes ?
Is the paperwork really an issue for mom and pop LTDs?
many many thanks in advance