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I know in the past, i have seen people argue that Loan 1 of £35k is cleared by the dividend and that the amount withdrawn since the year end is a separate loan.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.
- Accountancy practices - are you closed over Christmas or do you let your staff take it off? 952 29
- You know its over 337 4
- HMRC BACK AND FORTH FIGHT ON BTL PROPERTY ALLOWANCES 488 9
- How do you find shareholders of a Cyprus Company ? 220 13
- Valuing my fast-growing internet business for transfer of goodwill on incorporation 172 2
- HMRC won't let me set up online DD for PAYE 160 2
- What is the amount of dividends received as a shareholder that requires registration for self assessment? 250 3
- Cocaine anyone? 511 8
- Late Registration for VAT 489 13
- EIS/SEIS 144 1
- Amortisation of Goodwill 276 1
- TaxCalc Accounts production 417 5
- Depression - HMRC penalties case won because of this illness. 424 12
- Solicitors now, Accountants next 719 10
- How come if you claim benefits you are not entitled to you either have to pay a 50% penalty or are sent to court and either fined or sent to prison (sometimes suspended) and end up with a criminal record. 555 10
- ACCA - still making me laugh 591 4
- Personal pension 402 9
- Legal Aid Agency claims and VAT 222 1
- How much of your work is admin? 1,219 11
- Petrol expenses for self-employed 175 3
- Hive up 492
- Accounting referance change & deficient accounts. 458
- corporate hierarchy 439
- Advice - 272
- Anyone had HMRC refusing to act on EPS database glitch? 226
- WWOOFers 218
- Co. limited by Guarantee now closed 207
- Art Gallery - Splitting a property between business and personal use 201
- Tax liabilities in USA for warehoused products 181
- Mutual Trading - Exempt CT Income - Do I need clearance? 175