Ammending submitted accounts to show profit??

[SJT]

cba

[BolshieBastard]

Why not pick up the phone and ask your accountant?

[malvolio]

Hi all, first off I will admit to being very unknowledgeable regarding my ltd company accounts which is why I'm with Brookson (I know there are many threads regarding them!!)
I was after a new mortgage and it was soon brought to my attention that my last year's accounts were showing a loss (well the shareholder funds were showing approx £1500 deficit) which the mortgage company takes as a loss and therefore will not lend.

This was just down to me taking a dividend too soon. I get paid monthly so it was all good a couple weeks later, but of course ran over the year end.

My question is.. can I re-allocate my last dividend of that year to a director's loan, which would then make me (the director) a company debtor to of which the ammount will then be added back into the compant therefore making it in profit for that tax year?

SJT

Yes - if you want to trigger an investigation into potential tax evasion... I know you're not, but Hector will look at you retrospectively amending taxable outgoings and draw their own conclusions.

I think you need to realise one thing: you are responsible for your company's accounts, nobody else, and that includes getting it wrong. This isn't Brookson's fault, it's yours; you want to run a company, find out how to do it.

Anyway, you need to get into a dialogue with the mortgage provider(s), they are being very picky these days.

[malvolio]

Ta, I'm well aware my responsibilities thanks, and I'm not blaming Brookson for anything.
Don't have time at work to be on hold waiting to talk to Brookson just yet, hence asking here of how to (if possible) amend the situation

You miss the point. You paid money that wasn't available: that does not say to me that you understand even the basics of managing your company.

And personally I would make the time, but it's your call.

[northernladuk]

Admitting you don't know much about your company finances and not doing anything about it is just plain stupid.

[malvolio]

Aaah, I'm just lovin the sense of community here..

I think we're quite well united, to be honest. It's not us asking how to act illegally by rewriting your corporate history while admitting you don't know how that history is managed.

Or would you prefer we gave you the answer that it will all be fine and HMRC won't take any notice?

[malvolio]

I didn't realize it was illegal to amend your company accounts once submitted.

It's a statement of fact from which you have declared a tax liability. You can correct errors of fact - with a struggle but it is possible - but you can't decide you didn't like the answer and change it after the event, once you have signed off the declaration on your accounts. That's why your accountant sends them to you for review...

[FatLazyContractor]

My question is.. can I re-allocate my last dividend of that year to a director's loan, which would then make me (the director) a company debtor to of which the ammount will then be added back into the compant therefore making it in profit for that tax year?

SJT

Yes, it sounds like a very good idea. HMRC are busy chasing the wrong-doers. They won't take a note of you, TBH.

HTH

[SpontaneousOrder]

I've done similarly BEFORE the paperwork was submitted - usually just to make the paperwork less complicated rather than save any tax (e.g. i'd overpaid tax by alot when i moved from permie to contractor, so I took a big dividend and then changes enough of it to be director loan so that the balance came out at 0 - actually giving tax away for the sake of less hassle).
But you have to remember that while taking dividends instead of 100% PAYE is legal - if you're retrospectively cooking the books to make things more convenient as and when the need arises, then HMRC will see it as a way to play the system, rather than genuine business practise.

[tractor]

.....

Aaah, I'm just lovin the sense of community here..

It's not about community.

If Limited Companies were aeroplanes, the country would not be overpopulated.

It's time you had to have a licence to fly a Limited tbh.

If you ignore or intentionally fail to understand and manage your responsibilities as a director, you deserve all you get.