Received physical copy of bank statements from new client whose accounts are late - all that has been entered on monies taken out is dividends on the bank statements but there is no paperwork to back this up.
Should this be treated as a Director Loan ?
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I would assume the intention was there and that the paper trail is missing, so fix that rather than treating it as the dividends didn't happen
Yes there was the intention but always thought you should not backdate documents.
There's a difference between backdating a transaction and recording a decision.
Would you say that drawing up the minutes of a meeting is a forgery ? No - happens all the time.
Why not ask the director ? You may need to explain the implications of loans too, including how solvent to company is, tax treatment and so on. You have not given us a lot to go on here Jim.
You say they are dividends on the bank statements. Why are you thinking you should change this randomly to something else?
maybe, maybe not, impossible to say without looking at the accounts and knowing the client
Are there any profits ?
Even if there aren't, it could still be a dividend, albeit one capable of being recovered in an insolvency.
Have a chat with the director about the various ways he could withdraw funds from the company.
Yes there are profits its just the lack of paperwork threw me a little bit. ok fine will put as dividends in the accounts