Dividends over-paid...what to do?
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
- Car benefit or not? 2,232 19
- Excel First Tab/Last Tab missing in latest version(s) 366 4
- Share capital - death of a shareholder 620 20
- Annual Investment Allowance on Van 552 12
- Cloud-based email services? 429 9
- Time recording 328 5
- Auto enrolment without a PAYE scheme? 134 2
- iris update 11.9.2 336 5
- Transfering bank balnces between old and new co. 268 8
- International priorities 174 2
- How did you recalculate your payroll fees 1,109 17
- Auto enrolment confusion 1,692 37
- Company Structure 524 15
- Client tied in to accountant. Unfair contract? 2,791 38
- Tax Planning for Family and Owner-Managed Companies 2015/16 297 5
- HMRC Enquiry 241 1
- Limited company built a property and the client has made this messy 465 11
- Vat and Property 98 1
- Class 2 NIC 131 1
- Advertising Tips? 429 9
- Self employed and HMRC Worldwide Subsistence Rates 746
- Interest paid - do new rules affect Tax Credits? 440
- Costly Accounting Software contract 382
- Directors' advances and credits 292
- Market Invoice (P2P invoice discounting) tax treatment 266
- DTA tie-breaker issue 256
- Tax on internet ad sharing income 236
- Credit against UK NI for NI paid to EEC Countries 215
- CGT for NOn UK residents 204
- Apprenticeship Levy 187