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I know in the past, i have seen people argue that Loan 1 of £35k is cleared by the dividend and that the amount withdrawn since the year end is a separate loan.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.
- Entrepreneur - want to submit accounts by myself 138 4
- Bench-marking software, any ideas? 158 2
- Next Move 696 20
- Separate companies same Director buy from each other 140 2
- Self-assessment statistics 2,451 58
- Not renewing AAT 663 9
- CGT of shares gifted 374 6
- New dividend taxation 458 3
- Accountant won't release working papers 2,782 51
- Co purchase printed materials from EU - VAT 141 1
- Company car v company allowance 263 1
- Furnished Lettings - expenses normally bourne by tenant 436 9
- Company formation and bank account 416 9
- Owning overseas property 327 2
- MLR and benefitting from the disclosure 289 1
- Company Car for Owner Director number crunching - is there a ready reckoner? 262 3
- How did you recalculate your payroll fees 706 8
- Client tied in to accountant. Unfair contract? 704 9
- Importing Sage Data and Year End 264 2
- Legal structure of a group of friends producing a free newspaper 432 8
- Self employed and HMRC Worldwide Subsistence Rates 666
- Acrobat Checkbox Help for New 64-8 409
- Property letting & CAs 397
- Interest paid - do new rules affect Tax Credits? 393
- 2015 tax year end 392
- FCA regulated company in a small group 346
- Self employed consultant working in Ireland 318
- Market Invoice (P2P invoice discounting) tax treatment 239
- DTA tie-breaker issue 210
- Tax on internet ad sharing income 204