Should dividend payments be shown on payslips. I would usually post to the directors accounts, but are now being asked that they should be shown on payslips also. Wages are paid also which I put through PAYE, bit confused why the accountant would ask for this.
You might be able to add them to payslips, much like reimbursed expenses are, so they are not taxed, if the client is pushing for it though. Not sure if this would look a bit whacky to HMRC! Ive never done t, but perhaps another forum member has an opinion on adding it in?
Are you sure that they are qualified accountants and if they are, is the request coming from the office trainee rather than the accountant?
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
To be fair, a lot of accountants decide what the dividends are at the year end, and then make up the dividends vouchers/minutes to match! But you didn't hear that from me
thats fair enough. But you wouldn't put the dividend on the payslip. Thats like telling HMRC that for all the fighting against it being treated as salary it really is.
If sillies accountant doesn't want it being claimed as dividends throughout the year (I wouldn't want that as it looks too much like salary) then put all of the withdrawals to the DLA and then put through a dividend to clear the DLA at the period end (also common practice).
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I agree, you wouldnt put it on the payslip, and so do the accountants on the Aweb article... the accountant calculating them at the year end, makes me wonder why this accountant is asking this question.. as you say, it might be the person working on the accounts.. the minion, who is a trainee.
as you say, it might be the person working on the accounts.. the minion, who is a trainee.
The real contact at the accountants?
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
