Post Date Paper Dividend

[Scrag Meister]

How am I 20k out? I had the profit in the co. account, I just didn't do the dividend paperwork. My situation sounds just the same as MF's.

I had a similar situation during 2009/2010 where I had left a standing order active (approx £600 per month) from within the 2 year expenses period.

My accountant rang me at year end and told me to declare a dividend to cover it, to avoid a directors loan.

Job sorted.

[SueEllen]

How am I 20k out? I had the profit in the co. account, I just didn't do the dividend paperwork. My situation sounds just the same as MF's.

Why didn't you do the dividend paper work?

It's not exactly a hard thing to do. Links to templates can be found by searching this site or just by googling.

Your accountant is following the law correctly by refusing to get involved if you want to back date your paperwork. Why should an accountant put their professional reputation and their practise at risk because one customer is enable to do such a small thing for themselves?

[pacharan]

You answered your own question. You do not need to bother with that comment as you keep a grasp on your finances so it isn't an issue. For someone that is 20K out in a year they need to sit up and think about their responsibilities.

How am I 20k out? I had the profit in the co. account, I just didn't do the dividend paperwork. My situation sounds just the same as MF's.

[northernladuk]

Why bother with details like this.

To be honest, I tend to do the same thing. At the end of the year, I then work out with my accountant what should have been salary and then dividend. If I've gone over, then it's a loan. If I've gone further than that we sort something else out.

NL - Honestly. That's why I pay my accountant. To sort this stuff out for me. (Obviously I do keep a fairly good rough estimate of where I am)

You answered your own question. You do not need to bother with that comment as you keep a grasp on your finances so it isn't an issue. For someone that is 20K out in a year they need to sit up and think about their responsibilities.

[Wanderer]

There was always enough money in the account to cover what I had paid myself. The issue is that a dividend was never declared in the given financial year.

Now it looks like I'm right in the sh1t.

Your mistake was admitting it to the accountants. They are duty bound to do things the legal way and they can't condone backdating your paperwork. But as others have said, you should check all your paperwork, it's not uncommon for people to "misplace" their dividend paperwork and find that it was done after all....

[pacharan]

No. Lets be clear you ****ed up and want them to help correct it. Why should they help you effectively break the law. If you're not clever enough to work out what money is entering / leaving your account then that is your problem not theirs. Price has nothing to do with it.

Good luck at your next inspection.

There was always enough money in the account to cover what I had paid myself. The issue is that a dividend was never declared in the given financial year.

Now it looks like I'm right in the sh1t.

[Sockpuppet]

For the record I'm with one of the main firms that have a presence on this site.

They're pretty cheap and I guess that's where the problem lies.

No. Lets be clear you ****ed up and want them to help correct it. Why should they help you effectively break the law. If you're not clever enough to work out what money is entering / leaving your account then that is your problem not theirs. Price has nothing to do with it.

Good luck at your next inspection.

[pacharan]

For the record I'm with one of the main firms that have a presence on this site.

They're pretty cheap and I guess that's where the problem lies. In the past I paid double the amount & I just used to bung my account all my receipts at the end of the year and he would draw up a divi based on what I'd taken out.

Hopefully a phone call tomorrow morning will sort things out.

[MarillionFan]

The other option is to actually run your finances properly. As directory you are ultimately liable and it is you that will get fined and worse not your accountant.

Why bother with details like this.

To be honest, I tend to do the same thing. At the end of the year, I then work out with my accountant what should have been salary and then dividend. If I've gone over, then it's a loan. If I've gone further than that we sort something else out.

NL - Honestly. That's why I pay my accountant. To sort this stuff out for me. (Obviously I do keep a fairly good rough estimate of where I am)

[pacharan]

Yep, they are being ******* arseholes. Go back to your old accountant.

Unless last year's accounts have actually been filed with companies house \ hmrc, they are being very petty imo. I'd change them asap if I were you.

Filed with companies house but not HMRC.

[BolshieBastard]

Just got a very scary email from my (new) accountant. Drew out more (20k) in 2010-2011 than I had actually declared as dividend.

They will issue a paper dividend but have warned me that this will apply to current tax year. i.e. I won't be able to pay myself hardly anything without hitting the higher rate because I'll already be 20k down & the year has hardly started.

Can't you post date paper dividends? I never got in this situation with my old accountant & I used to operate in exactly the same way.

Help, Please!

Yep, they are being ******* arseholes. Go back to your old accountant.

Unless last year's accounts have actually been filed with companies house \ hmrc, they are being very petty imo. I'd change them asap if I were you.

[northernladuk]

The other option is to actually run your finances properly. As director you are ultimately liable and it is you that will get fined and worse not your accountant.

[SueEllen]

Your new accountant is operating strictly under the law.

If however you forgot to send him the screwed up paper dividend which you did yourself and you misfiled then I suggest you put it in the post and send it to him via recorded signed for post. After all you don't want Royal Mail to misplace it after you just found it......

[doodab]

I think that normally ends up as a loan doesn't it? So the new dividend just serves to repay the loan, it doesn't have to be post dated or back dated or anything.

There might be something to pay on the loan though. It used to be a benefit in kind and you were taxed on the nominal interest but the rules changed in the last few years I think, I'm not sure what the situation is now.

[pacharan]

Just got a very scary email from my (new) accountant. Drew out more (20k) in 2010-2011 than I had actually declared as dividend.

They will issue a paper dividend but have warned me that this will apply to current tax year. i.e. I won't be able to pay myself hardly anything without hitting the higher rate because I'll already be 20k down & the year has hardly started.

Can't you post date paper dividends? I never got in this situation with my old accountant & I used to operate in exactly the same way.

Help, Please!