Loan/Director

Nickyno

My other half has his own ltd company and is wanting to apply for a personal loan, however it asks for "bank statement" for proof of salary, and wage slips. Being a director 50% shareholder/worker he does not have wage slips and the money he takes from the company bank account to pay myself (director) and his wage according to our accountant are dividend payments. so how do we go about wage slips?

foxy-stoat

Arrrr, one of the down sides of dividend payments - harder to prove your income.

I am sure his accountant will have records of the payments, just submit his annual accounts summary statement together with his bank statements showing the money going in.

Nickyno

Hes only had the company since june1st of this year. But prior to this he was self employed and has his annual accounts from then for tax year 15/16

would this be any good?

foxy-stoat

Maybe, he must of had accounts for the last 3+ years.

Check with the lender once he runs a quote on compare the meerkats or similar...try his own bank first though, they would be the best place to start.

Alt

Are you sure he doesn't get a salary? Unless you have reached your annual personal allowance limit then paying a salary up to the limit is the most tax efficient way to pay yourself.


Alt

Nickyno

As far as i was aware the £500 per week he drew was his salary, its just the accountant said it was him taking as dividends which means £26000 as dividends per year and £0.00 as salary not sure if his accountant was thinking straight yesterday, maybe need to look around for another accountant lol

Suarez

Nickyno wrote: »

As far as i was aware the £500 per week he drew was his salary, its just the accountant said it was him taking as dividends which means £26000 as dividends per year and £0.00 as salary not sure if his accountant was thinking straight yesterday, maybe need to look around for another accountant lol

This could possibly be the self employed work from April to June using up the personal allowance for the year. Next year I imagine a small salary will be drawn alongside dividends.

bris

If you have the same shareholding then you must get the same dividends which means you would get 26k too, is this correct?


Dividends is the best way to be paid as your company will have already paid the tax on it, although it still needs to be declared.

Nickyno

Yes the accountant did mention about his self employed earnings from April - June. Latest from accountant "The monthly directors salary is £676.00 (£8112 per annum)."

So I'm baffled as to what the £500/week he draws is classed as.

So confused i'm new to all this and haven't got a clue it seems