Labelling dividends/salary on bank transactions?
My client has historically not labelled the transactions between himself and the company bank account (he has a Ltd company and he is the only employee/shareholder), taking money 'willy nilly'.
At the end of the year he takes the basis salary to keep below the thresholds and deems the rest to be dividend or allocates against the directors current account, as he has invested a bit of money in the company.
I have a feeling that the revenue may frown upon such flexibility and think I have read or heard somewhere that the dividends and salary should be clearly labelled. My concern is that the revenue could deem all withdrawals as salary???
I know there also arises the issue of dividend vouchers in this situation.
Can someone please put me out of my misery?
Thanks in advance
- Questions from Liquidator 2,209 24
- Drawing Down Directors Current account 1,483 9
- Directors liability insurance and scope 74 4
- backpack 104 2
- What would you do here, potential insolvency. 67 2
- Really?! 369 5
- Separate companies same Director buy from each other 532 11
- Dominant influence and intercompany loans 193 3
- VAT - Medical Staff 93 1
- Auto Enrolment - Help each other by sharing known problems 138 2
- VAT 701/49 query 136 1
- FCA regulated company in a small group 372 1
- Are you going to Xerocon? 1,126 27
- Legal Fees Allowable in dispute 357 7
- Is the CT61 return dead? 162 3
- How did you recalculate your payroll fees 812 10
- Entrepreneur - want to submit accounts by myself 1,026 14
- HMRC site still hasn't updated for January SA filings 543 8
- SSP and Contractual Sick Pay Query 361 9
- Commercial Premises Purchase using Company Profits 497 13
- Self employed and HMRC Worldwide Subsistence Rates 698
- 2015 tax year end 429
- Interest paid - do new rules affect Tax Credits? 408
- Self employed consultant working in Ireland 339
- Costly Accounting Software contract 287
- Market Invoice (P2P invoice discounting) tax treatment 250
- Directors' advances and credits 238
- DTA tie-breaker issue 234
- Tax on internet ad sharing income 216
- Credit against UK NI for NI paid to EEC Countries 196