Dividends

Hi,

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?

Thanks

Matt

Comments
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It depends on whether the

kstan1122 |

Declare the dividends however you like

johnt27 |

The correct answer is very techical.

thacca |
thacca's picture

retrospectively??

Ding Dong |
Ding Dong's picture

Follow the Companies Act 2006

Nichola Ross Martin |
Nichola Ross Martin's picture

Weekly Dividends

marks |

Dividends

Monsoon |
Monsoon's picture

Beware of the dividend police

blok |
blok's picture

If profits allow ...

Old Greying Accountant |
Old Greying Accountant's picture

Dividend police?

cfield |
cfield's picture

I'd be very grateful for this information

petersaxton |
petersaxton's picture

Formula

cfield |
cfield's picture

@ thacca - Don't think there's a money laundering issue

brianheg |

Merely charging interest will

barriehamilton |

Just do a board minute then

cfield |
cfield's picture

365 x (A2-A1)?

chatman |

No, that's wrong!

cfield |
cfield's picture

Why the confrontational language and the exclamation mark?

chatman |

Because your criticism is wrong...

cfield |
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Brackets

petersaxton |
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Understood the post; didn't understand the choice of formula.

chatman |

No, I was wrong!

petersaxton |
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Stereotypes

Fred Smith |

What do you know?

petersaxton |
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Calculations are necessary in accountancy

chatman |

Do not disagree with the need

Fred Smith |

@ Fred Smith

chatman |

What a big kerfuffle about nothing!

cfield |
cfield's picture

Formulae need to be correct

chatman |

It IS correct

cfield |
cfield's picture

Not so straight forward

petersaxton |
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Not the same formula; not the same result.

chatman |

Pre-menstrual?

cfield |
cfield's picture

Two mistakes

petersaxton |
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Different?

cfield |
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Overdrawn loan acct interest charges & BIK

Essex34UK |

Interest at end of loan period

cfield |
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