Switching from Self Employment to Ltd Company

Switching from Self Employment to Ltd Company

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Is it possible to carry on doing the same under ltd company and account for the wages and dividend at the end of the accounting year or does he need to set up a specific wages and dividend every month and produced payslips and dividend vouchers?

Could you please tell me the implications of not having dividend vouchers. Would the funds then be classed as Benefit In Kind and be sudjected to Tax and NIC?

As the limited company does not have a regular monthly income, it's difficult to set up a specific amount every month for wages or dividend. Please advise and thank you in advance.
Michael

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By martin.alan-day.co.uk
15th Sep 2005 13:32

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Amounts can be withdrawn as previously. Best way to deal with the legal side is to declare a small salary on PAYE returns and make up rest with dividends. It would probably be best to declares dividends quarterly and always best to prepare minutes and dividend vouchers etc. Not having the dividend vouchers wuold not class it as BIK. Be careful if IR35 could apply in this case.

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