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5 answers

Michael, the answer is the same as when you asked this question before. Your accountant is wrong or you have misunderstood his advice.

The correct accounting treatment is that dividends in the P&L are the same as the dividends actually paid.

Tax treatment would be a different question with a more complicated answer.

2007-06-03 21:49:20 · answer #1 · answered by JC 3 · 4 0

The reason behind this is because a 10% tax credit is applied to the dividend, so if you have drawn £10k as a dividend the amount that goes on your Individual Self Assessment is 1/9 x £10k (=£11,111). The company would show £10k in its accounts.

2007-06-04 10:35:48 · answer #2 · answered by notmarriednochildren 4 · 0 0

I'm with JC on this. The answers to the previous question more than covered the matter.

2007-06-04 10:47:04 · answer #3 · answered by Do not trust low score answerers 7 · 0 0

The only reason for doing so is either :-
1) To evade Tax
2) To cover up Fraud elsewhere in the cash flow

2007-06-03 23:41:35 · answer #4 · answered by Steve B 7 · 0 1

okay

2007-06-03 21:02:52 · answer #5 · answered by Icarus 6 · 0 0

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