Dividend amount paid in error - how to rectify?

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Sockpuppet replied

21 May 2010, 10:03
Originally posted by xoggoth View Post

Despite their reputation, you will generally find HMRC are not concerned with insignificant amounts or errors and you will find they say this in various places in their docs.

Aye. I under payed VAT by a grand by accident once. Realised it and phoned them. They just told me to pay an extra thousand into the account.

Then a few weeks later got a letter saying "you under paid....oh we have a payment from you....sorted"
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xoggoth replied

21 May 2010, 08:59
Despite their reputation, you will generally find HMRC are not concerned with insignificant amounts or errors and you will find they say this in various places in their docs.

Last edited by xoggoth; 21 May 2010, 09:11.
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zedAccounts replied

21 May 2010, 07:41
Originally posted by Olly View Post

No, don't do that. Just do what the first chap said.

Agreed. Don't turn a genuine mistake into a transaction.

ZED.
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Olly replied

21 May 2010, 06:31
Originally posted by pmeswani View Post

Just declare it as a Director Loan on the books and pay the money back.

No, don't do that. Just do what the first chap said.
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pmeswani replied

21 May 2010, 05:45
Originally posted by Mr_Z View Post

Company dividend declared then mistake made transferring funds from company bank account to directors personal account. Resulted in too much cash transferred to the tune of 10k over dividend amount

Is it possible to legally repay this overpayment to company (within 1/2 day timeframe) without any consequences for the accounts such as Directors loan etc

There is profit available to cover the extra amount paid in error, but its not particularly tax efficient to take this amount at the moment

thanks

Just declare it as a Director Loan on the books and pay the money back.
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Sockpuppet replied

21 May 2010, 05:29
Just pay it back to the company and put a note in the accounts that you fecked up.
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Mr_Z started a topic Dividend amount paid in error - how to rectify?

20 May 2010, 23:09
Dividend amount paid in error - how to rectify?

Company dividend declared then mistake made transferring funds from company bank account to directors personal account. Resulted in too much cash transferred to the tune of 10k over dividend amount

Is it possible to legally repay this overpayment to company (within 1/2 day timeframe) without any consequences for the accounts such as Directors loan etc

There is profit available to cover the extra amount paid in error, but its not particularly tax efficient to take this amount at the moment

thanks
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