Reply to: Ammending submitted accounts to show profit??

[BlasterBates]

Did you even read the thread title (let alone the threads first post)?

This isn't general so sadly I cannot comment further....

If you read the link you would see the subject is about reversing dividends after submitting accounts, and one answer was that they had experienced it and HMRC approved it.

So corrected my answer....

Whether that means it affects the P&L of the year he wants it changed is another matter.

[eek]

According to the link below someone has reversed a dividend after consulting with HMRC. If you haven't submitted your accounts I would have thought it would be possible,

Did you even read the thread title (let alone the threads first post)?

This isn't general so sadly I cannot comment further....

[BlasterBates]

According to the link below someone has reversed a dividend after consulting with HMRC, even fater ou have submitted your accounts it might be possible,

Can you reverse a dividend? | AccountingWEB

Talk to your accountant.

He should be able to help you, probably depends on HMRC's willingness to accept it.

[tractor]

...

Can't you have the sales accrued into the correct accounting period?

Only if you are Tesco or Enron.


Then you do it by the billion.

[Freelancer Financials]

SJT, it's obvious that you're not using a mortgage broker from what you are saying. Each lenders criteria differs when it comes to assessing affordability based on accounts. Some lenders will only work on your physical drawings and others will use your net profits. The majority of lenders also want to see a positive capital account e.g. The assets must outweigh the liabilities. Virgin Money go even further by taking into account your net current assets.

If you're a contractor working on a day rate, then you can also be assessed on your contract rate, avoiding the need to submit accounts.

John Yerou

[GlenW]

These were the accountant's words.. actually

So not only are they rubbish accountants but their English is pretty damn poor as well.

[Scruff]

Can't you have the sales accrued into the correct accounting period?

[Alan @ BroomeAffinity]

Well turns out there were funds owed to the Director at the year end that can be offset against the shortfall in the shareholders' fund, so don't need for a DL. Wouldn't this be what should have been done in the first place?

As a man in a big hat once said "Better to remain silent and be thought a fool than to speak and remove all doubt"

If there were excess funds owed to the director it'd show on the BS as a liability so would have no impact on the BS value.

[meridian]

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.
SJT

Bit confused with this bit. Your accounts shouldn't be showing a loss if you've made a profit during the year and distributed it as dividends?

Sounds like neither you nor your mortgage company know the difference between a loss and a liability?

[eek]

And if you want to be spoon fed Crunch are reasonable accountants and will give you a very easy to follow screen that shows you exactly what is happening and what you can and can't do...

[SueEllen]

Well turns out there were funds owed to the Director at the year end that can be offset against the shortfall in the shareholders' fund, so don't need for a DL. Wouldn't this be what should have been done in the first place?

You can't go back and change history. Well you can but you may end in jail....

Look change accountants to one who makes you do your own invoices and book keeping. Then you will know when you are allowed to take a dividend and when you can't. You will also be more aware of what expenses you can and can't claim plus why. That way you won't end up in this mess again.

[eek]

Well turns out there were funds owed to the Director at the year end that can be offset against the shortfall in the shareholders' fund, so don't need for a DL. Wouldn't this be what should have been done in the first place?

You really don't know why you are talking about do you? I would recommend finding another accountant and learning the basics about running a business asap before HMRC take a closer interest in you....

[Contreras]

The question is whether the payment was a divi or a dl. If it was a divi you can't undeclare it. If it was a DL and you mistakenly declared it as a divi (aye, right) then you might have a shot at amending your accounts. Amending accounts isn't illegal. Amending a payment from divi to DL is. You'd need to amend your divi voucher and meeting minutes as well. You do have those don't you?

Well if it was genuinely a DL then one would hope not.

However I have to agree with the others that amending the accounts this way (legitimate or not) would be asking for trouble.

[ASB]

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

It isn't.

However the have to reflect the actuality. If you are amending then the originals didn't do that.

It is possible there were errors in them. But, on the assumption the dividend was correctly declared in the first place, then that is what is is. It's a piece of history.

It it happened to turn out the dividend was not declared correctly and it was in fact a loan then you can amend.

Of course losing the paper work, it becoming retrospectively a loan would be committing a number of offences. Both you personally and the accountants.

[northernladuk]

That's pretty much it.

You need to ditch them and sign up with Upton's in Leeds IMO.