Labelling dividends/salary on bank transactions?

Hello

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

 

 

 

 

Comments
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To be correct, dividends and

sparkler |

ahem

mr. mischief |
mr. mischief's picture

Surely they might query

sparkler |

There are three types of clients

Euan MacLennan |
Euan MacLennan's picture

start of year minutes/resolutions

Ding Dong |
Ding Dong's picture

Salary/dividends and PAYE

2910pl |

PA Holdings

luke potts |

What you need is practical help

Tom 7000 |
Tom 7000's picture

RTI

Malcolm Veall |
Malcolm Veall's picture