Amending company accounts to include dividends
I filed my accounts, but completely overlooked the fact that I had not raised, declared or paid any dividends that year.
Normally my accountant advises what to pay as salary and as dividends. As my company had been dormant (I assume that's why), they didn't offer any advice last year - I just reviewed the automatic summary and filed it. I had the dates confused in my head, thinking I had a few more months to raise the dividends, not realising they should have been part of that years accounts - complete accidental oversight.
What I would like to know is, can I amend the accounts (I still have time), and raise the dividends for that prior year, or would this be considered unlawful? The posts I have read all discourage backdated dividends, however this seems to refer to when there were no funds available. In my case the funds were always available, and were always intended to be paid, also allowing the correct tax to be paid on my self assessment etc.
I am now non-resident, so if I take any money out since becoming non-resident, I face 45% foreign tax. If I had (or still can) raise them for the previous year while I was resident, the problem disappears. In this case I am trying to pay the UK tax, not avoid it.
I called HMRC, they said I can lodge an amendment with in x timeframe, but they were unable to answer if declaring dividends would get me into trouble. During Covid they are working from home and not offering specialist support calls, so they told me to post a letter with my enquiry - I did that but never heard anything back. Now running out of time.
Normally my accountant advises what to pay as salary and as dividends. As my company had been dormant (I assume that's why), they didn't offer any advice last year - I just reviewed the automatic summary and filed it. I had the dates confused in my head, thinking I had a few more months to raise the dividends, not realising they should have been part of that years accounts - complete accidental oversight.
What I would like to know is, can I amend the accounts (I still have time), and raise the dividends for that prior year, or would this be considered unlawful? The posts I have read all discourage backdated dividends, however this seems to refer to when there were no funds available. In my case the funds were always available, and were always intended to be paid, also allowing the correct tax to be paid on my self assessment etc.
I am now non-resident, so if I take any money out since becoming non-resident, I face 45% foreign tax. If I had (or still can) raise them for the previous year while I was resident, the problem disappears. In this case I am trying to pay the UK tax, not avoid it.
I called HMRC, they said I can lodge an amendment with in x timeframe, but they were unable to answer if declaring dividends would get me into trouble. During Covid they are working from home and not offering specialist support calls, so they told me to post a letter with my enquiry - I did that but never heard anything back. Now running out of time.
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