I have a client who is a single director/shareholder of a company. Like many, despite my protests, he continues to use his busines bank account like his personal account and pays for a great deal of personal expenses through it.
At the end of the year when I come to complete the company accounts I allocate all these expenses to his directors loan account. In addition, where profits allow I would declare these withdrawals as directors dividends.
My question is at what date would these dividends be declared and accounted for? Should I work out what the total dividend should be and declare the total at the year end date or should they be apportioned throughout the year accordingly?