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
- Tax relief for backdated pension contributions 225 7
- Closing down - who should buy whom? 45 2
- How long do legal aid take to pay? 40 1
- Two questions re client meetings and TR Fees 345 5
- Personal Pension Withdrawal 213 2
- Liability account to deal with loans from owner 104 5
- Failure to operate PAYE 1,636 31
- PAYE NI 85 2
- quote for winding down two companies and file accounts 82 1
- SA302s - Lenders to accept non hmrc copies 819 14
- How much to charge? 688 10
- break even point 1,000 30
- Trustee in Bankruptcy 166 5
- Accomodation and travel 202 1
- Unpaid Fee's 339 6
- Issue with a software supplier 221 4
- Is there a requirement to clearly state the amount of a bill? 300 5
- Limited Company trading status. 239 6
- VAT flat rate scheme 143 1
- Alphabet shares dividend paperwork 153 2
- Possible Partnership? 510
- Lunatics in charge of the asylum - Bluestone 490
- Tax and accounting treatment on long lease granted from freehold 464
- New Fangled Penalties 305
- Clubs and Taxable Income 256
- Purchase of property freehold - capitalisation of costs 256
- Deferring taxable income until after 5 April 247
- Loans to other companies 190
- Tasbook email configuration 182
- Closed PAYE schemes and auto enrolment 165