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Director's salary to dla

Is there a time limit re deduction against CT?

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I have in the back of my mind that salary posted to the dla can only be offset against CT if taken within a certain time period, is that true?  I had a query yesterday and Mr Google hasn't come up with the answer.

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04th May 2019 09:55

Posting to the DLA counts as payment.

Now - if it wasn't entered on the P11 (or its electronic equivalent), that's a very different matter.

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to lionofludesch
04th May 2019 10:24

And one needs to be mindful of the RTI implications of crediting salary to an overdrawn DLA

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to Wilson Philips
04th May 2019 10:51

Wilson Philips wrote:

And one needs to be mindful of the RTI implications of crediting salary to an overdrawn DLA

Can you expand please? Not applicable to this case or client but I have in the past posted all salary to the DLA because the Director was just taking money out willy nilly. There will have been stages where it was overdrawn, but I kept a strict eye on it and got the Director to clear down with dividends when needed.

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to legerman
04th May 2019 11:42

To be honest, I don’t know if HMRC have stepped back, but their original position was that where cash had been withdrawn from an overdrawn DLA in advance of salary being credited to it then for RTI purposes the date of payment (and thus when PAYE became due) was the date of the cash withdrawal. I do recall a lot of discussion at the time so, as I say, the treatment may now be different.

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04th May 2019 10:11

9 months

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to atleastisoundknowledgable...
04th May 2019 10:14

You might be confusing this with making a baby.

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to andy.partridge
04th May 2019 12:53

andy.partridge wrote:

You might be confusing this with making a baby.

I think I’ve answered the wrong question, more unpaid (accrued) salary / CT deductible, rather than to the DLA.

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