Dividend's wrong ratio paid, how to correct it?

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northernladuk replied

14 April 2013, 18:42
Originally posted by doodab View Post

Advise ask your accountant.

Originally posted by captainham View Post

Advise ask your accountant.

Originally posted by Advocate View Post

Despite the previous comments you could always ask your accountant!

Sent from my tweeting foot massager.

You guys make me so proud <sniff>...
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Wanderer replied

13 April 2013, 10:35
Originally posted by everfor View Post

I am running a small IT limited company with 2 share holder me and my wife in ratio of 70:30. Don't ask me why, couples of times i have paid a dividend's amount wrongly in the ratio 40:60(overpaid to wife and less to me). Is there any ways to correct this amount in the records?

Now it's time to submit annual return form should i submit as usual 70:30 ratio or 40:60 ratio kindly advise

Does the paperwork show the actual dividends paid or the correct dividends that should have been paid? If the paperwork is wrong then you could redo the meeting minutes and dividend vouchers to show the correct amount. It's technically possible to sign a dividend waiver to waive your right to the dividend that you didn't get paid but you have to be careful doing this because you want to make sure that the amount paid to each of you is minimising your tax bill so this may not be the best way to go about it.

If the dividends are paid into a joint account then there's probably no problem with it, just make sure the dividend vouchers show the correct 70:30 split. If it's separate accounts then explain it away that you paid part of your dividend entitlement directly to your wife.

The more I think about it the more tricky it gets. I think that a decent accountant could straighten it up for you fairly easily when they do the year end accounts but they would have to have a close look at your accounts to figure out exactly what is the best way.

Do you have an accountant or is this a DIY job? If it's your first year trading and you don't have an accountant the I'd approach a few and get a quote for them to sort out your year end for you as it would be money well spent.
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Advocate replied

13 April 2013, 09:35
Re: Dividend's wrong ratio paid, how to correct it?

Despite the previous comments you could always ask your accountant!

Sent from my tweeting foot massager.
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captainham replied

13 April 2013, 09:32
Originally posted by everfor View Post

I want to check what option's available.

Advise ask your accountant.
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everfor replied

13 April 2013, 09:18
Originally posted by doodab View Post

Advise ask your accountant.

I want to check what option's available.
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doodab replied

13 April 2013, 08:18
Advise ask your accountant.
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everfor started a topic Dividend's wrong ratio paid, how to correct it?

13 April 2013, 08:17
Dividend's wrong ratio paid, how to correct it?

I am running a small IT limited company with 2 share holder me and my wife in ratio of 70:30. Don't ask me why, couples of times i have paid a dividend's amount wrongly in the ratio 40:60(overpaid to wife and less to me). Is there any ways to correct this amount in the records?

Now it's time to submit annual return form should i submit as usual 70:30 ratio or 40:60 ratio kindly advise
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