- If you declare a dividend you must have the relevant dividend documents prepared – HMRC require this paperwork as evidence that a dividend has been declared under the correct process and is therefore valid and not PAYE.
- Any dividends paid without the relevant paperwork and are subject to HMRC review will automatically be reclassified as salary, meaning tax and national insurance will therefore be payable to HMRC.
- Blu Sky can raise the correct documentation for you, just ask your Client Account Manager when you wish to declare a dividend and they will produce the correct documentation for you.
- If you are declaring dividends and don’t ask Blu Sky to complete the documentation, we will work on the understanding that you are completing the relevant documentation.
9th May 2016
