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?
Replies (16)
Please login or register to join the discussion.
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.
What is the problem? The company has avoided paying at least £3k corporation tax, hasn't it? Bingo!
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.
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.
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.
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.
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.
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.
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!