Tier1 Extn- Dividend Voucher - Limited Company director.

[dilip_gem]

Hi there,
I worked as a contractor through my own limited company for a year. I used to take salary regularly (end of each month) and pay myself Dividends Once a month (anytime during the month).
I hired an accounting firm who did not have much experience in handling IT contractors though they are a very big Accounting firm.
Based on our initial talks, they started processing my payroll and started including the Divident amount in each month's salary. (Sal+ Dividend shown in the salary slips). The pay date mentioned on the payslip is end of each month however it does not match the fig when we tally with bank a/c as Dividend is paid on a different date.
When I discussed this with my accountant and asked for dividend voucher's instead. he aggreed and we came up with the following template for dividend vouchers & MOM.
Now since we come to know the exact tax only at the end of the year. The Interim Dividends were payed based on a rate which is NET amount per SHARE. is that ok?
I've asked my accountant to rework on the salary slip and include just the Salary for the each month in payslips and Dividends in Vouchers. Plus I shall get a letter from him with details of each payments made. Is it ok for the Extension application?

Please find below templetes that we used.

Thanks and Regards,
Gem


Voucher Template
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<Company LOGO>
XYZ LIMITED
Registered office: XXXXX, London


NOTICE OF DIVIDEND AND TAX VOUCHER

Year ending 28 February 2011




To: Mr ABC

Class and denomination of shares: Ordinary £1

Number of shares held: 1

Rate of interim dividend: £1,000 (net) per share

Tax credit: £111.11

Dividend payable: £1,000.00

Date of payment: 10 August 2010







Director


The tax credit shown is notional and cannot be reclaimed. This voucher should be retained for Tax Return purposes.





MOM Template
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<Company LOGO>
XYZ LIMITED
Registered office: XXXX ,London




MINUTES of the directors meeting held at XXXX,London on 10 August 2010 at 8.30 am




PRESENT Mr ABC




PROPOSED DIVIDEND it was RESOLVED that a dividend of £1000 (net) per ordinary £1 share be paid on this date in respect of the year ending 28 February 2011


ANY OTHER BUSINESS there being no other business the meeting closed at 8.45 am






For and on behalf of XYZ Limited

[AccountantMatthew]

In short, your accountant is correct. I can explain how dividends work if you want so please let me know - however this takes more than a sentence or two so this would be a long post if I would have included it here.