Can Dividend be considered as Capital Distribution

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Hi, I have taken £10,500 as dividends in 2013/14 before the company annual tax returns, Due to my visa rejection, I closed the company without submitting company tax returns for that financial year.  Although I have declared those dividends into my personal self-assessment but it's still not declared by the company. Legally I can not take dividends unless the company has declared it.  Can those dividends be considered as capital distributions or whats the best way to make those dividends legal?  

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By johngroganjga
26th Jul 2017 10:51

So your company has prepared no accounts?

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By sunnyliaqat
26th Jul 2017 11:15

Not for that particular year, I have been reading and SA108 will allow those dividends to be considered as capital gains.

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By mrme89
26th Jul 2017 11:26

Dividends are dividends.

Capital distributions are capital distributions.

It doesn't matter if the dividends were not reflected in the accounts due to your non-compliance. Unless you have a time machine, the dividends are still ... you guess it ... dividends.

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By andy.partridge
26th Jul 2017 11:38

What is the problem? The company has avoided paying at least £3k corporation tax, hasn't it? Bingo!

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By User deleted
26th Jul 2017 11:58

Hope I'm not being too disrespectful in noting that, these days, I seem to spend a disproportionate amount of time, simply trying to decipher the enquiry on Aweb.

And, of course, the initial enquiry; provides little useful detail but requires a freebie, as a reply. Is it just me.........

And, of course, the futility of the option to post anonymously, just adds to the fun.

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Replying to User deleted:
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By andy.partridge
26th Jul 2017 12:07

Yes, Adnan has fallen into Sift's little trap. Encourage you to post something sensitive with anonymity and then the big reveal when you enter into a discussion. Priceless.

Anyway, a few clicks reveals Adnan's current company but not the one he closed.

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RLI
By lionofludesch
26th Jul 2017 12:13

Do as you wish pal.

It doesn't look like you're all that bothered about doing things correctly, judging from the tale you tell.

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By sunnyliaqat
26th Jul 2017 12:42

Some people are judging for no reason. If you can't help, Please keep your thoughts to yourself. Anyhow one solution I got from an accountant to re-open the company and declare those dividends. Simple! Thanks for your comment guys.

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Replying to sunnyliaqat:
By mrme89
26th Jul 2017 13:02

The accountant you spoke to is stupid.

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Replying to mrme89:
RLI
By lionofludesch
26th Jul 2017 13:15

Bit brusque - but I'm not saying you're mistaken.

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Replying to lionofludesch:
By mrme89
26th Jul 2017 13:17

On a more positive note, they were probably speaking at a level the OP understands.

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Replying to mrme89:
By Tim Vane
26th Jul 2017 13:19

Actually I don't think the accountant is stupid at all. Just willing to part a fool from his money. I would happily offer to re-open the company and declare the dividends for a decent fee and a feeling of delivering an overdue come-uppance. I would then charge even more to deal with all the related issues that this would throw up.

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JCACE
By jcace
26th Jul 2017 13:53

The submission of a company tax return will not, of itself, make a dividend declaration. An interim dividend is declared when the directors authorise it, after taking due consideration whether the company has sufficient retained reserves from which to pay said dividend. Such a decision should have been recorded and relevant dividend vouchers prepared and given to the shareholders.

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Replying to jcace:
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By andy.partridge
26th Jul 2017 14:00

Too late. He's made his mind up and no amount of collective professional experiences or legislative references will persuade him, despite the paucity of his own knowledge.

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By Portia Nina Levin
26th Jul 2017 14:41

I had some nutter phone me up about this just this morning. I told him the solution was simple; we could just restore the company, do all the necessary paperwork, and then just get it struck off again. Cretin!

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Replying to Portia Nina Levin:
RLI
By lionofludesch
26th Jul 2017 15:09

[chuckle]

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