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I know in the past, i have seen people argue that Loan 1 of £35k is cleared by the dividend and that the amount withdrawn since the year end is a separate loan.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.
- New ACCOUNTINGQUESTIONS website launching 237 5
- JUDGE FRAUD ALERT 233 4
- Closing my business down 46 3
- VAT on long lease in comercial property that has opted to Tax 190 6
- Director - earning less than £8500 and no taxable benefits - PllD? 72 1
- So who has completed a 2015 tax return then? 578 12
- Scams are not always obvious 2,238 36
- Auto Enrolment - Director Only Answer 1,461 21
- CIS Subcontractor Catch Twenty Two Position after 14 years 181 2
- What do you all do in your spare time? 828 33
- VAT flat rate scheme 84 1
- Can I record depreciation, prepayments and accrued expenses in cash accounting? 282 4
- Need some help on importing procedures and VAT 80 1
- I have let a client go as it wasnt worth the hassle, 2,084 19
- TaxCalc - A Return to Form 403 6
- Should a non trustee sign Scottish charity accounts? 146 1
- How do we get US withholding tax back? 213 3
- FPS or EPS 160 2
- Continuity of Practice 212 2
- IRIS Professional Yearend 141 2
- Moving away from CCH software 952
- QROP pension input amounts 439
- write off loan or loan to equity swap or both 381
- HMRC BENCHMARK EXPENSES 356
- Unused Losses and Post Cessation Receipts 325
- fraud 284
- EIS relief on transferring shares to spouse 256
- Sole trade business in UK, but the owner works from EU 227
- Construction CIS LLP Company 211
- EPS and CIS deductions 198