dividends exceeding retained profits
I realise this has been discussed before but id like to run the scenario past my learned friends on here.
just done some accounts for a small limited company; dividends taken were approx £40k
retained profits before divis were only £13k; meaning a deficit of £27k
There is a £43k direcotrs loan to draw on but the fact is the dividends were voted and paid each month and were transferred to the directors personal account (narrative on stmt says divi).
Furthermore a few weeks ago we scheduled the dividends for borrowing purposes.
Part of the deficit is a large deferred tax provision as a van was bought and 100% AIA claimed.
I think the accounts should remain as they are with the actual dividends paid being left as dividends.
A mate of mine that works at a different practice is saying net the deficit off the directors loan.
What does anyone else think!!??
All input greatly appreciated
- ethical- to continue to act or not? 311 8
- Is laminated flooring an improvement on carpets? 92 1
- Entrepreneurs Relief 818 46
- Moneysoft and People's Pension 198 5
- EU eservices VAT change imminent 368 8
- how to object to registered company name... 162 1
- Recharge for private use of a company car 468 14
- What to say to Tom, Dick and Harry... 357 5
- VAT QUESTION 294 3
- Property income in different capacities 172 3
- More AE! 681 15
- Charity Grant accounting 59 1
- Money Soft payroll 541 11
- Overdrawn Directors Loan Account 209 2
- Change of payroll software 417 10
- Director phone costs 278 1
- Do most of you still use MS Office? 357 8
- 2013-14 Tax Return-Transparent Benchmarks? 211 2
- VAT Tax Point - Overseas Purchase 151 4
- VAT surcharges and change of business entity 51 1
- Auto enrolment excuses 1,183
- Feedback on accounts production software for IFRS 801
- Add T&Cs to Sales Order in Sage 497
- Digita Hosted Software 324
- Credit where credit's due....... 281
- Buying goods in US and selling them to company in US 230
- Flat rate VAT- other income calculation 167
- Double taxation relief - same income, different individual 145
- Corporation Tax return - more than one trade 132
- Small Business Rates 128