A client of mine is drawing a dividend and his salary of £641.33 a month all in one transaction from the bank. It's the first time I have come across this. Which means the dividend is an odd figure i.e. £1858.67 Is it OK to do it this way or should they showing 2 separate transactions?
If he's got documentation proving the split of the payments (e.g. for the dividend amount, a board minute and dividend voucher), then it should be okay. I would still prefer him to make separate payments just to remove any potential query over what salary had been paid (which is particularly relevant now RTI is in force).
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Pearce & Co - Chartered Accountant and Chartered Tax Adviser
