Amending company accounts to include dividends

[Paralytic]

I used to create print out the paper trail for year end accounting. Sometimes afterwards... But the money always left the bank account into mine in the right financial year. (Actually, that can be done after the event... but it must be booked within the financial year, which must be done before the books are closed for the year. The personal tax liability is when it is actually paid).

Does this not depend on whether it is an interim or final dividend?

If a final dividend, the personal tax liability is due from the dividend declaration date, even if the actual payment date falls into a subsequent tax year (the amount due will be a directors loan/creditor in the intervening period).

[Old Greg]

Your statement shows a massive misunderstanding of dividends,

You cannot intend to declare a dividend. If you wish to declare a dividend, you have to hold a shareholder meeting, table the motion to declare a dividend and vote on whether to pass the motion.

All of the above require planning and a paper trail.

What you really mean to say is, with hindsight I've realised I would have been better off if I'd declared a dividend earlier. Well hindsight is a wonderful thing, and you've learnt a lesson, but you can't retrospectively hold a meeting that would need to occur in the past unless you are on good terms with Doctor Who and can borrow the Tardis

I used to create print out the paper trail for year end accounting. Sometimes afterwards... But the money always left the bank account into mine in the right financial year. (Actually, that can be done after the event... but it must be booked within the financial year, which must be done before the books are closed for the year. The personal tax liability is when it is actually paid).

Quite. It wouldn't be the hardest thing in the world to backdate the minutes and dividend voucher, although it would be very bad indeed to do so. But the payment not being made is the clincher.

[NotAllThere]

I used to create print out the paper trail for year end accounting. Sometimes afterwards... But the money always left the bank account into mine in the right financial year. (Actually, that can be done after the event... but it must be booked within the financial year, which must be done before the books are closed for the year. The personal tax liability is when it is actually paid).

[oilboil]

If legal, i would "backdate" the dividend to before I left the UK - the year in which it was intended (but forgotten) to be declared - I would then amend my company accounts to include that dividend. Re dating the minutes - I guess that's impossible to backdate since they don't exist for that year.

Your statement shows a massive misunderstanding of dividends,

You cannot intend to declare a dividend. If you wish to declare a dividend, you have to hold a shareholder meeting, table the motion to declare a dividend and vote on whether to pass the motion.

All of the above require planning and a paper trail.

What you really mean to say is, with hindsight I've realised I would have been better off if I'd declared a dividend earlier. Well hindsight is a wonderful thing, and you've learnt a lesson, but you can't retrospectively hold a meeting that would need to occur in the past unless you are on good terms with Doctor Who and can borrow the Tardis

[SueEllen]

If legal, i would "backdate" the dividend to before I left the UK - the year in which it was intended (but forgotten) to be declared - I would then amend my company accounts to include that dividend. Re dating the minutes - I guess that's impossible to backdate since they don't exist for that year.

It isn't and coming on a public accessible forum stating what you intend to do isn't the brightest thing.

[NotAllThere]

Forgot to declare dividends. Oh dear.

[jamesbrown]

If legal, i would "backdate" the dividend to before I left the UK - the year in which it was intended (but forgotten) to be declared - I would then amend my company accounts to include that dividend. Re dating the minutes - I guess that's impossible to backdate since they don't exist for that year.

Not legal. End of story.

[SimonMac]

Because backdating accounts is toally legal and legit. Everyone does it

I'm going to assume that the overall objective is to back date a dividend to a different personal tax year, to evade avoid paying tax in a subsequent year, as I see little to no reason what someone could gain by backdating a dividend in your company accounts.

[northernladuk]

If legal, i would "backdate" the dividend to before I left the UK - the year in which it was intended (but forgotten) to be declared - I would then amend my company accounts to include that dividend. Re dating the minutes - I guess that's impossible to backdate since they don't exist for that year.

Because backdating accounts is toally legal and legit. Everyone does it

[Lance]

Acting fraudulently in the UK jurisdiction to evade tax in another jurisdiction.

UK considerations
- you've committed the offence there so if caught caught you risk being struck off as a director.
- you've not evaded tax in the UK so unlikely HMRC are going to be interested unless they suspect you've ripped them off as well at another time
- likelihood of being caught = low.

Foreign considerations
- I've no idea what country this is. How do they treat tax evaders?
- if you're caught in the UK that increases the chances of being caught. But what about receiving money in the new country that should have been received months ago? How are you going to launder that cash?

[Old Greg]

If legal, i would "backdate" the dividend to before I left the UK - the year in which it was intended (but forgotten) to be declared - I would then amend my company accounts to include that dividend. Re dating the minutes - I guess that's impossible to backdate since they don't exist for that year.

Doesn't look very sensible to me.

[Karenurq]

What date do you intend to record on the dividend voucher and on the minutes of the meeting at which you declare the dividend?

If legal, i would "backdate" the dividend to before I left the UK - the year in which it was intended (but forgotten) to be declared - I would then amend my company accounts to include that dividend. Re dating the minutes - I guess that's impossible to backdate since they don't exist for that year.

[Old Greg]

What date do you intend to record on the dividend voucher and on the minutes of the meeting at which you declare the dividend?

[jayn200]

I have no idea if you can amend them or not (not an accountant) but aren't you thinking of this all wrong? Its really the payroll year that matters not the financial year of your company. You declare dividends out of your retaining earnings not out of your profits for the year, you still have those earnings the next financial year you can still take them out as dividends.

Sorry didn't read the part about being non resident and trying to declare your dividends when you were resident. I have no idea.

[Karenurq]

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.