I have completed a set of annual accounts for year ended Nov 2010 using the Sage data supplied to me by the company's previous accountant.
After calculating the corporation tax and putting this through the accounts, the total dividends paid in the year now result in a negative retained profit of around £150.
I know that dividends can only be paid out of retained profits, and have read various discussions on "illegal" dividends, but my query is, what to do about it?
The dividends have been paid, so do I need to reclassify anything to directors loans? Or do I just submit to Companies House / HMRC as is and wait for HMRC to contact the company and tell them whether they need to reclassify?
Thanks for any advice