overpaid divi query and child benefit Q

[diesel]

I have overpaid by about £1k to date mysekf dividends, as i realise i have some other investment interest to consider. Is there anyway i can repay this dividend back to the Ltd Co, and reissue the divi voucher?


Also, do the restriction on child benefit for high earners start next tax year? If so does that mean anyone who is in the higher tax band by even a few pounds is not eligible?

[Sockpuppet]

I have overpaid by about £1k to date mysekf dividends, as i realise i have some other investment interest to consider. Is there anyway i can repay this dividend back to the Ltd Co, and reissue the divi voucher?


Also, do the restriction on child benefit for high earners start next tax year? If so does that mean anyone who is in the higher tax band by even a few pounds is not eligible?

You cannot "repay" a dividend. However as I assume you have the dividend vouchers yourself you could just lose the dividend voucher and instead put it down as a loan through the directors loan account. Then the next time you pay yourself you can just take into account the £1000 you have owing to the company and cancel it out.

That would work if you have more money due from your company. I wouldn't do it if you had to physically give the money back to the company as that looks suspect.

You could declare an overpayment of salary and ask for it back into the company - which is legitimate. That would be less suspect than playing around with dividends (and also legal - technicaly the above isn't).

[Wanderer]

just lose the dividend voucher and instead put it down as a loan through the directors loan account. Then the next time you pay yourself you can just take into account the £1000 you have owing to the company and cancel it out.

WHS. Does anyone except yourself know it was a dividend? If not then just restate it as a director's loan. As long as your loan account is < £5k you are fine. Even if it's not, I can't see the problem in repaying the money and just say it was a "mistake".

[DaveB]

It's an accounting error by the company resulting in an overpayment of dividends. In order to bring the accounts back into balance the next dividend payment will need to be reduced. As long as you do this and put a note in the accounts to account for the discrepancy and it's resolution there should be no need to muck about with directors loans etc. As long as divi's paid out over the full year do not exceed the companies profits there should be no problem.

[SallyPlanIT]

It is proposed from January 2013 that higher rate tax payers will not be qualify to receive child benefit. It will still be paid, but will be clawed back by self-assessment statement of account or tax code change for PAYE

[diesel]

It's an accounting error by the company resulting in an overpayment of dividends. .

my accountant suggested i do not class the dividend overpayment as an error. Reason is that the dividend payment was at an agreed board meeting and errors should not have been made. Instead i should pay some money back counted as director loan repayment.

[Sockpuppet]

my accountant suggested i do not class the dividend overpayment as an error. Reason is that the dividend payment was at an agreed board meeting and errors should not have been made. Instead i should pay some money back counted as director loan repayment.

Which is why we went down the route of who was at the board meeting (you did hold one didn't you? ) was your accountant there? If you just sent him an updated div voucher he shouldn know how this works by now.