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Need clarification on director's payments

Need clarification on director's payments in financial statement of small company

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Can someone clarify how much this director personally earned for this year? On the financial statement for his small limited company it says (in column format); `Advances/credits to the director'=£72654   then next to this `Amounts repaid'= (£92883) then next to this `Balance outstanding'=(£20234). Then there is a section called `Related party transactions' where it states that the company purchased an annuity contract from this director for £150,000 two years previously and that the company will receive an annual payment of £480 for his lifetime. It also states he got £89500 dividends. What can one tell from this about what this director earns? How much tax would he have to pay on the dividends? Would any of his expenses/pensions etc have to be declared on his tax return also? many thanks

 

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09th Dec 2018 08:33

Of the things you mention, the only one that is his income is the dividends of £89,500. He may have had salary and benefits in kind as well, but you would usually not be able to discern that from the accounts alone.

What is your interest in the company and this director?

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09th Dec 2018 14:41

With all due respect, OP, this director's earnings are none of your business.

This is just outrageous nosiness.

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09th Dec 2018 15:18

That’s not the real question, is it?

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10th Dec 2018 09:14

Can anyone with an accounting background help please? I thought this was a pretty straightforward question! thanks if so.

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to earlycomputers
10th Dec 2018 09:56

OK - well, the loans advanced aren't earnings, the repayments aren't earnings, the balance at the year end isn't earnings, the dividends aren't earnings, the £150,000 sale of annuity isn't earnings and the £480 a year isn't earnings.

So, on the basis of the information you give us - nothing.

What you would like to know is his salary, which isn't disclosed.

Not as straightforward as you'd have us believe.

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