I have received the September newsletter of the English accountancy firm
Roger Wood and Co. It says if you receive a dividend from running a small limited
company, you need to have the right paperwork in place otherwise the HMRC could decide it is part of your pay and charge national insurance on it.
The HM Revenue and Customs might view the dividend payment as a loan payment
and charge 25 pct tax on it. The accountants firm Roger Wood, which is based in
Dorchester,Dorset, says you need the appropriate minutes approving the
dividend payment. In addition, there should be a tax voucher proving the amount
of the dividend and that tax is deducted at source.
This view is not in the September newsletter of Roger Wood but I believe
the Gordon Brown government uses small companies as instruments of its
social policies. The role of small companies does not seem to be to
generate employment but to pay as much as tax as possible. The HMRC is
very attentive on dividend payments.
Changing the subject, in Dorchester, there is a very nice museum with a
diverse collection. I would really recommend a visit. The Dorset County Museum
is trying to raise a quarter of million pounds to save three paintings for
Dorset by George Romney.