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Dividends voted via board minutes

In order that we don't fall foul of the rules but to ensure that our clients utilise all their tax bandings wisely.... can a one-off board minute be prepared and signed saying something on the lines of 'we require a dividend to be paid annually until further notice to a maximum level which utilises our distributable reserves'. Would this then allow us to properly place the most tax effiicent amount of dividend to the directors loan account when we prepare the accounts? We ask as we are finding that client's have drawn , lets say, £20,000 throughout the year but their are enough reserves to have enabled , say, £35000 but no board minute...
Annette Dwyer

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19th May 2009 15:02

Payroll software for children's day nursery
Does anyone know of a payroll software that is best suited for a children's day nursery? I have a client who would like to combine a timing system for the time with the payroll. So that staff "clock in" and "clock out" and the system will work out the salaries due from predetermined parameters entered into the system.

Would be grateful for any suggestions.

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17th May 2009 14:31

Welcome back, Jason
I thought you had deserted us. Your time away has not improved your debating skills, alas.

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17th May 2009 12:20

..
i know of an accountant in cases like this that used to post to himself dividend vouchers in seperate envelopes for differing amounts, say £5k, 10k, 15k etc prior to 5th April.

when he did the account he would then keep the most relevant one in his file unopened and shred the others. think he made a note on reverse of envelope about which client and how much divi.

not morally, or ethically correct but just thought id share the story!

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16th May 2009 23:35

I agree
with Penny and have largely done precisely the same thing.
I would recommend that those who don't eek the view of their PII underwriters if they are covered for deliberately falsifying the procedure should a claim arise.

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15th May 2009 16:38

Couldn't agree more, Penny
Of course there are still accountants who prepare accounts six months after the year end and backdate a dividend cutely to a convenient time just short of 5th April. But let's be honest, it smells and it smells rotten.

But what of this annually recurring maximum dividend? Is the maximum level necessarily tax-efficient? I don't think so.

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