Anyone got hsmp tier 1 extension or initail on dividend?

[ssoct98@hotmail.com]

My question is that how HO calculate dividend,Is a director of ltd company apply and take dividend at the end of year without accounts or after company accounts made or he can take dividend only when accounts are being made by accountant.
How HO calculate dividend?if a company profit is 22k,and his accounts is from dec 2007 to march 2009(profit is 22k in accounts) and director took 11k (as there are 2 partners) in may 2009.So did HO count it,or they divide it 22000/15 and alot him whatever came under 12 out of 15th criteria.
PLease advise.

[ChetanOjha]

Let me try to explain things... which I have replied in your other thread too.

1.You do work and invoice your client on your company's behalf. Lets say you bill your client for 20 days @£100/- per day rate. Total Invoice amount £2000 + VAT. [For 12 months this would be £24000k +VAT]
2.You receive money from your client in your "company" bank account.
3. Now from the money you receive from your client, you have to pay VAT(that is first deduction).
4.Since you are working as a director of the company, you should be receiving some salary. Presuming you will take minium salary(to save NI and Tax) e.g. £12000 per annum. This will £1000/month (Gross). Net salary from this £1000 per month would approx. £850 (and £150 gross to Tax and NI which company will deduct at source).
5.Now the net after directors salary you are left with is £24k-£12k=£12k. Out of this £12k you have to pay employer's contribution of NI+Tax, Corporation tax. and other deductions which you might incurr on company's behalf.
6. Whatever now left is your "Profit".You can take dividends from this amount as suggested by your accountant.Maximum tax free dividend you can take is 28K per year.

Now to take dividend from your company you can take it two ways:

1. You can also take dividend after accounts are prepared by your accountant i.e. from the net profit of your company.
2. OR you can always calculate approx. in advance and pay yourself per month (or in chunk) to yourself. BUT this amount should not me more than what you will earn. Make sure you do not take more than required dividend.Speak to your accountant and he will advise you how much you can take monthly(or in chunk) BEFORE accounts are prepared.

I hope this will make things clear.

My question is that how HO calculate dividend,Is a director of ltd company apply and take dividend at the end of year without accounts or after company accounts made or he can take dividend only when accounts are being made by accountant.
How HO calculate dividend?if a company profit is 22k,and his accounts is from dec 2007 to march 2009(profit is 22k in accounts) and director took 11k (as there are 2 partners) in may 2009.So did HO count it,or they divide it 22000/15 and alot him whatever came under 12 out of 15th criteria.
PLease advise.

[ssoct98@hotmail.com]

one last thing,as i said accounts are going to be made between december 2007 to december 2008 or we can extend it to march 2009,and profits declared are 22k which is 15th month,when he go to HO in june,they can ask him accounts,if he show accounts they can see profit is 22k,they divide it by 15 and alot him only what came in 12 out of 15h creiteria,as monthly it is 1466.65/month,may be they ask him as its previous accounts you cant take it.
Reply for that i became all clear,much clear from previous but thats the last q.