hints and tips

Make sure you have appropriate documentation to back up dividends drawn from your own company

When a company declares a dividend to its shareholders, this declaration needs to be accompanied by a corresponding set of board meeting minutes and the preparation of tax vouchers for the shareholders. If you don’t do this, HM Revenue & Customs could challenge the dividend and seek to treat it as a salary, meaning you have tax, national insurance and employer’s national insurance to pay.

At Inca we've tried to simplify this process by preparing templates for the minutes and associated tax vouchers in electronic format. A full suite of documents including example completed minutes and tax voucher plus blank templates for each is available for a standard fee of £99 + VAT. Please call Graham on 01865 821100 to order.