Does a £35k dividend clear a £35k overdrawn DLA
Firstly,many apologies for posting this question as i know similar if not the same question has been asked before. I have quickly searched any answers to find the answer but have drawn a blank.
DLA overdrawn by £35k at the year end. It is now 8 months since the year end. We now know that there was £32000 of undistributed profit at the year end. If i clear the £35k by £30000 final divi plus £5k interim divi now does that remove the need to pay S455 tax? He will have taken out probably £35k+ since the year end.
I know in the past, i have seen people argue that Loan 1 of £35k is cleared by the dividend and that the amount withdrawn since the year end is a separate loan. Do the Revenue accept that?
Alternatively, what about backdating a £32k dividend to a date say 14 days after the year end? I must admit that doesn't sit comfortably with me but does anybody adopt this approach. I guess the Revenue can never prove the date a minute was passed crediting the dividend to the DLA?
Any help greatly appreciated and once again apologies for posting a question that has almost without doubt been covered before.
- The stupidity continues 806 49
- transactions after account have been closed 216 5
- What is IRIS World like? 377 9
- Land Rover Discovery 3.0 SDV6 255 Comm Auto 2 seat 349 8
- Can I claim Vat on solicitors invoices? 222 6
- Limited company director - other earnings in the tax year 263 4
- CIMA at the age of 35?? 541 10
- Offsetting CT losses against another company 240 6
- Calculating capital gains tax for non-residents UK residential property 143 1
- CIS. Why is it so complicated? 2,342 25
- New Employers Helpline 213 4
- Software recommendations 284 1
- Share transfer question 393 17
- qualifying for 1/9th tax credit on foreign dividend 192 2
- HMRC & daft penalty 2,473 19
- Overlap relief 764 19
- Pension contributions 386 10
- Do you have to declare business expenditure on a personal credit card on your P11D? 518 11
- Do you use sign up lists on your website 224 1
- Setting up PAYE scheme without UTR 295 8
- Has anyone been affected by the RBS payment breakdown? 440
- Straight line write off of Purchase Goodwill ??? 438
- WIP Software 302
- FRS 102 compliant illustrative accounts for an insurance company 291
- No payroll scheme in place 236
- CGT, PPR and transfer of equity to spouse. 233
- Do subcontractors on work for residential (student accomodation) construction 212
- Is there anything wrong with this? 206
- Small Part Disposal of Property 192
- Uncommercial property business 183