Taking Dividend After 5 April But Applying It To Current Tax Year

[Platypus]

I don't believe this is correct. As long as you have a papertrail of Invoices for March and have calculated your Profit and what is available, you can make the declaration.

I'm happy to stand corrected. It was always my understanding that:

Profit = Income - Expenses
Deduct corp tax = profit after tax i.e. the amount available to pay divs
Minus divs already paid = amount available to take as this dividend

Sure, I suppose you could include monies invoiced but not received in Income

My accountant always advised me never to take divs right up to the max, leave about £1k because you might find some expenses weren't in fact allowable.

[Vallah]

You have to declare the dividend prior to the year end, but don't actually have to pay it until after. As long as you have sufficient retained profits, it's fine.

Dr Dividends £x,xxx
Cr Accruals £x,xxx

Job done.

[rawly]

You can only declare a dividend if the company has a lump of profit it's sitting on. In your case that sounds not to be the case.

I don't believe this is correct. As long as you have a papertrail of Invoices for March and have calculated your Profit and what is available, you can make the declaration.

In order to fall into the 09/10 Tax year you need to have your meeting and paperwork done before 6th April to declare it. When you actually pay it to yourself has nothing to do with it really.

[xoggoth]

Just as long as you aren't earning over £150k a year! If you are they might be looking for excuses to disallow I read.

[THEPUMA]

You can only declare a dividend if the company has a lump of profit it's sitting on. In your case that sounds not to be the case.

I disagree. I think the company has retained profits as the work has been performed so a dividend can be declared.

If it is to be an interim dividend rather than a final dividend, it must be "paid", but this can include a transfer to a loan account with the company.

PUMA

[Platypus]

Can anyone advise if this is possible, even if the Company's bank account has a zero balance.

Basically I'd like to use what I have left of this year's allowance by taking a dividend, but I won't get paid for my first invoice for another 2 weeks.

Is it possible to declare the dividend, and then transfer the money to my personal account when I have it?

You can only declare a dividend if the company has a lump of profit it's sitting on. In your case that sounds not to be the case.

[db1]

Can anyone advise if this is possible, even if the Company's bank account has a zero balance.

Basically I'd like to use what I have left of this year's allowance by taking a dividend, but I won't get paid for my first invoice for another 2 weeks.

Is it possible to declare the dividend, and then transfer the money to my personal account when I have it?

[joey122]

You declare the dividend now and immediately loan the money back to the company via the directors loan account.

No money changes hands now, but the dividend has been declared and 'paid' this tax year.

Then the company repays the loan to you in a month or so.


Simples!

Ah makes sense - Thanks very much

[blacjac]

You declare the dividend now and immediately loan the money back to the company via the directors loan account.

No money changes hands now, but the dividend has been declared and 'paid' this tax year.

Then the company repays the loan to you in a month or so.


Simples!

[BolshieBastard]

I want to take a dividend as part of my 2009 / 2010 tax year

My accountant says that technically I should pay it to myself before 5 April but if I dont they are able to pay it after that but apply it to the 2009 tax year.

How is this actually possible? Does anyone have a link which describes that

I am really confused about that

You pay your accountant good money (presumably) for advice then ask for confirmation or explanation on a forum!?

Sockpuppet alert.

[joey122]

I want to take a dividend as part of my 2009 / 2010 tax year

My accountant says that technically I should pay it to myself before 5 April but if I dont they are able to pay it after that but apply it to the 2009 tax year.

How is this actually possible? Does anyone have a link which describes that

I am really confused about that