Cancel dividend in submitted company accounts by making amendment - Contractor UK Bulletin Board

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Pennydroppers started a topic Cancel dividend in submitted company accounts by making amendment

30 November 2017, 09:37
Cancel dividend in submitted company accounts by making amendment

Hello,

I had a directors loan of > 10k as at Jan 2017. I had a journal entry which had a dividend which then reduced the loan to zero. The company accounts were filed in May 2017. This has had a big impact on my personal self-assessment, with the dividend tax rate being pushed into the higher tax bracket.

Is it possible to cancel the dividend, and amend both the company and personal tax return? I will then be best to pay the S455 tax on the outstanding balance which is 25%. It hasn't been 12 months after filing, but i'm not sure if it's legal/allowed to change three returns:
1. HMRC Company Accounts
2. Companies House Filing
3. Personal Self-Assessment

The dividend was never declared fully on paper, just put through as a manual journal in the company accounts. I don't want to cross into any tax evasion territory, but i thought by making the amendment and paying the S455 tax due on the overdrawn amount this would be okay.

The company is now effectively dormant, after I am a PAYE employee since March 2016. I was considering entering into a MVL, but am happy to keep the company active if the above can be done.

Thanks
Tags: dividend declaration, tax avoidance

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