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Dividends taken after final cessation accounts

How are these to be treated

Final cessation accounts drawn up to 31 March 2018. Client took dividends of around £10k in total in April and May. Reserves are over £200k at cessation, 31/3/18. Do these dividends taken in April and May get taken into account when the formal liquidation takees place, or should they be brought into the final March 2018 accounts and shown as dividends. If we dont account for them in the March accounts and therefore dont tell the client to account for them in his personal tax return how will they get accounted for ?

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By OC
16th Nov 2018 22:41

Don't bring them into the accounts because they don't form part of the final accounting period. Is the OP asking if they form part of the final distribution?

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17th Nov 2018 10:32

The liquidator will just deal with the assets on hand at liquidation and, in many cases, pre dividend tax, companies would be kept in limbo for years with dividends being paid annually to reduce reserves, with accounts merely showing a reducing balance sheet.

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By Ruddles
19th Nov 2018 10:56

Re my deleted post, apparently advising a questioner as to which tax return the dividends should be reported on is inappropriate. Sigh. (Yes, my post did contain an acronym which some apparently found offensive, but I've been told that my advice regarding the correct tax return added nothing to the conversation.)

Since there would appear to be no point in contributing further, bye all - it's been fun.

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to Ruddles
19th Nov 2018 12:43

Hope that isn't a final farewell - you're one of the good ones!

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to Ruddles
20th Nov 2018 11:18

Oh come on.

It's up to the Op to say whether s/he thought your contribution informative, but the acronym, other words used and the general tone were more about you needing to belittle the questioner.

It's the sort of response that puts people off asking questions on here and so, yes, I found it wholly inappropriate.

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to Paul Scholes
20th Nov 2018 13:41

Are you the snitch Scholesy boy?

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to Lone_Wolf
21st Nov 2018 15:09

Yes, I complained, although thought that would be obvious from my comment.

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to Paul Scholes
21st Nov 2018 15:21

If it's up to the OP to determine whether a post is informative (although if their knowledge is severely limited it can be both informative yet unhelpful to them), might it, by your logic, also be for the OP to make a complaint?

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to Paul Scholes
21st Nov 2018 17:00

It was pretty clear from your comment, yes, but given the negative social stigma associated with snitching, I just wanted to confirm before allowing that to be what I associate you with from now on.

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to Lone_Wolf
23rd Nov 2018 12:41

Whilst I don't know Paul Scholes personally and, therefore, don't have any "leaning" one way or another, in that respect, Paul does come across as; a very experienced accountant, well versed/read in a variety of accountancy, technology and tax aspects and, from what I can see, having great integrity. I have no evidence to think otherwise.
I therefore, personally, find your comments harsh. No more and, no less. I hasten to add, I haven't made a complaint!
It also seems somewhat churlish, again in my opinion, for a fellow accountant to charge another with the description "snitch".
Isn't that what we're expected to do, each and every time we complete a Suspicious Activity Report, in respect of a client? And, I'll be the first to admit, I have no qualities as an unpaid Policeman, for HMRC.

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21st Nov 2018 15:21

" If we dont account for them in the March accounts and therefore dont tell the client to account for them in his personal tax return how will they get accounted for ?"

What do you mean by "...and THEREFORE* don't tell the client ...."

a. The shareholder gets told by getting a dividend voucher, not by looking at the accounts.

b. You could always just tell him.

First job is to decide what sort of dividend this is. Final, interim or a part disposal on liquidation.

*My emphasis.

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