Tax Documents
Professionally drafted, regularly updated documents each with its own "how to use" introduction

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Profit extraction (15)

Spouse's job description
A business can pay a salary to the spouse or other family member of its owner if they work for it. Having a formal job description will help justify the amount paid if HMRC decides to challenge it. How much? The wages paid to a spouse will be a valid tax deduction for the business if HMRC is happy that... Read more
DOWNLOAD June 2019
Type: Miscellaneous
Dividend checklist
When you want to pay a dividend, there are a number of considerations to take into account to ensure it is valid. Our checklist will help you to establish that your dividends are up to scratch.DividendsDividends are amounts paid to shareholders out of the accumulated profits of a company. Generally speaking,... Read more
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Type: Checklist
Dividend voucher
When your company pays a dividend it should provide each of the receiving  shareholders with a dividend voucher as a receipt for their records. Issue a voucherWhile not strictly necessary under company law, it's advisable for a company to issue a Dividend Voucher for each dividend (interim or final).... Read more
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Type: Letter
Interest payable on loan account minute
Where a director's loan account is in credit, the board can agree to pay interest on the balance. This should be recorded in a board minute.When to use this board minuteIt's advisable to set out the terms and conditions of how much interest will be paid and when, and record this in a board minute - our... Read more
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Type: Document
Director's loan account write-off letter
An overdrawn director's loan account can be cleared by the company if the directors or shareholders agree to write the loan off. However, it must get the paperwork right.Reporting requirementsWhere a director or shareholder's loan is written off, s.415 Income Tax (Trading and Other Income) Act 2005 says... Read more
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Type: Letter
Director's loan agreement
A director shareholder doesn't have to sign a loan agreement when they borrow money from their company. The terms of borrowing can be agreed orally or just implied. However, in certain situations a director is required by company law to obtain permission from the shareholders prior to borrowing company... Read more
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Type: Agreement
Director's loan account record
A taxable benefit in kind may arise where a director is provided with a loan, either interest free or at a rate of interest below HMRC's official rate (3% for 2016/17). Use this document to calculate what, if anything, you need to declare to HMRC. Make a note Where a cheap rate or interest-free loan... Read more
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Type: Form
Licence agreement
Where your company makes a payment to you in return for being allowed to use your home or other property for its business, you should draw up an agreement to formalise the arrangement. A licence agreement, rather than a lease, provides your business with non-exclusive rights over the chosen part of your... Read more
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Type: Agreement
Dividend waiver
A dividend waiver is a document produced by a sharelder to show that they have given up (waived) their right to one or more dividends that they would otherwise be entitled to. A waiver can be used in income tax and inheritance tax planning but it must be made as a deed or HMRC will not accept its validity.... Read more
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Type: Document
Year-end bonus board minute
Bonuses for employees or directors declared after the year-end may only be accrued in the balance sheet if there was a "legal or constructive obligation at the balance sheet date" to make such payments. All other bonuses declared after the year-end cannot be included in the accounts until the following... Read more
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Type: Miscellaneous
Annual certificate of interest
If your company pays you interest for lending it money, it must deduct income tax first and provide you with a certificate to show this.certificateThe interest can be paid or credited to the director's loan account on a regular basis to be drawn against later. Generally, the company has to deduct income... Read more
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Type: Letter
Directors' benefits in kind - board minutes and contract clause
Directors' benefits in kind - board minute and contract clauseWhere your company provides a director with benefits in kind, it's good practice for the arrangement to be recorded in a board minute and in the director's contract. remunertation packageThere is no need for any special wording for a board... Read more
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Type: Document
Licence agreement (garage)
Where you use your garage for storage on behalf of your company, it can pay you rent. The arrangement should be formalised by a licence agreement which gives the company non-exclusive rights over the property.Company storageYou will need to record any payment made to you by your company for use of your... Read more
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Type: Agreement
Interim dividend board minute
A company can only pay dividends where it has "distributable profits". Broadly, this means post-tax profit for the current or previous years which has not been paid to the shareholders. The directors must keep records to show they have considered this.dividend timingFor a comprehensive board minute concerning... Read more
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Type: Document
Distributable profits board minute
A company can only pay dividends where it has "distributable profits". Broadly this means post-tax profit for the current or previous years which has not been paid to the shareholders. The directors must keep records to show they have considered this.A legal dividendCompany law says that once you've... Read more
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Type: Document