Member Since: 10th Aug 2004
27th Apr 2020
Can you tell us the nature of the business, also what assets were transferred, and what assets or liabilities would be left with the partnership.
13th Jan 2020
Thanks for your reply, and that was the conclusion I had reached too.
Since sending the question I also thought to do as as you suggest, to prepare accruals accounts for the trustees themselves and receipts/payments if anyone else asks (which they are quite likely to just for interest).
7th Nov 2019
Thanks for the replies. Agreed that all the creditors need to be informed of the strike off application.
On a practical note, we should also make sure we get all our fees paid in advance, prior to closing the bank account.
18th Sep 2019
I agree. This is exactly how I see it. The dividend is not taxable in the hands of the shareholder, as recognised by HMRC.
If you go one step further, if the shareholder was not aware that the dividend was unlawful, and could not have been aware (eg if the company is a large PLC) the unlawful dividend IS a dividend with all the tax consequences that follow.
As others have said, there is no way you would want to argue that with a sole director/shareholder.
17th Sep 2019
Thanks for all the useful comments on this post. I should have dug deeper in the first place as it is covered by HMRC manuals CTM 15205.
Going back to the question, the same person is the sole director and shareholder. Distributable reserves were minimal at the beginning of the year, and the dividend was higher than the amount of realised profits at the time of payment which was in cash. The client should have been well aware of this as I have told them often enough before but maybe they forgot as they had been profitable for the last couple of years.
CTM 15205 does state that where the recipient should have known that it was illegal, the dividend is repayable but is also void as regards income tax.
Where the company is a close company the amount paid represents a loan to the participator with a potential charge to tax under s455(2) until it is repaid.
24th Jul 2019
I agree with the questioner that you need to be careful with dormant companies as you won't know the full history.
Many years ago I was involved with due diligence for a client and we found that the target company had at some time in the past transferred properties intra group. As was the case in those days this had involved a transfer of the beneficial ownership while legal title stayed with the transferor but they were now dormant. Subsequent to that the dormant companies were struck off the register.
27th Jun 2019
When I was recruiting, it was quite common to receive a candidate's CV from multiple agents. As you have done, I applied the rule that the first one received would be the agency used, and the agents then were quite happy with that (I am sure one of them told me that was the law anyway.) This was 20 years ago and thinking back, the CVs came by post so establishing which one arrived first would have been more difficult than with e mail.
It should be easy to demonstrate which CV arrived first, and also which agency set up the interview.
24th Jun 2019
I may be well out of date here but some years ago I can recall the setters of accounting standards trying to word the leasing rules so that airlines would have to capitalize the aircraft. Up till then they had avoided doing so even though the planes were under a finance lease.
20th Jun 2019
It's not crazy and I have known people do it, including a PE teacher when I was at school who left to train as a Chartered Accountant, and this was in about 1972.
I would echo the reservations made by others here. The job is not what it was and the admin and paperwork just to do anything is overwhelming (though teachers say the same thing).
One interesting line to follow if you are interested is to combine the two. There is a need for lecturers/presenters in the accounting profession at all levels from new trainees to experienced professionals. Quite often this is handed to partners and managers with no training and can be worse than useless. But if you have ever attended a course with an enthusiastic and committed presenter it makes all the difference. And the audience genuinely want to learn, and don't spend all day mocking other members of the class and making smart alec questions to the teacher.
26th Apr 2019
I wonder how large partnerships deal with this on a merger?
I can see a difference as the same partners will transfer to the new place but still there is a new entity of some form taking over the old practice clients