Reply to: Interest-bearing director's loan for 6 months, SA100 and CT600 treatment

[northernladuk]

It’s no wonder you’re getting the response you have so far. It appears you’re looking for someone to justify what sounds like money laundering/fraud/evasion.

Indeed. If this is so can we have Kazh's posts in general as well please? That thread is even worse.

[Yuri F]

WTFH - nothing in your post affects questions from OP, specifically : short-term director' loan and implications on CT600/Annual accounts filling.
Everything else happening inside business on why it was done this way - beyond the scope, doesn't affect the process and the outcome.

[WTFH]

Moved to general, where we like shaggy dog stories.

[jamesbrown]

defamatory

But if you do want defamatory, you've come to the right place. First, you'll need a good reputation.

[WTFH]

Lance,
The thing is - I do know the answer (and there's no any problems with it, especially considering my 50 lines GL {PAYE/NI/VAT/Invoice x12 months + EoY:CT and some minimum office exp.} - hiring accountant for something like this would be crazy), just was looking for a second/third opinion.
Sorry, I might seem a bit harsh but you guys as always have twisted it all inside out with weirdest interpretations and kind of advice nobody asked about.
I'm also a bit surprised such simple matter triggers these sophisticated and pointless rhetoric leading nowhere - very counterproductive, probably something I should have get used here..


Some more background to my case:
Initially payments were made actually as dividend (a bit in advance) because with one of customers we've signed £x00K contract and received significant prepayment,
then this covid thing hit the fan and customer balancing on an edge of bankruptcy..
I do understand it's force-majeure and my call was to refund prepayment (despite contract terms allowing to walk away with money, but these guys are not d..s, so we all need sensible business environment, not a wild west with bunch of cowboy traders)
Obviously it caused some dilemma on balance sheet.. dividends paid, profits refunded.. >>> this reversal resulting in negative equity..
Technically there's nothing urgent though, CT paid in 9 months (by this time I'll have sufficient profits from other activities to fix minus).. short-term liquidity is solid,
As emergency remediation I've decided reclassify this dividend payment effectively turning it into short-term loan and return principal with interest before end of accounting period.
(additional equity/capital raise would be stupid because financing would come after income taxes)..

thus paranoiac's with tax evasion conspiracies can take a break - standard business practice to correct the situation in a sensible way navigating through non-deterministic world.. although negative equity isn't a problem either, many companies do have it (even some I work with), I just don't like it, it was my executive decision to keep everything up to a better standards (and public commercial records always in ++ territory).

Oh, so now we get version 4+ of the story, but still vague.

You paid yourself dividends. With no assistance you decided that it was legal and OK to reclassify a payment as something else for some reason that you’re not prepared to tell us. You decided to refund a customer - again, lots of missing details - is there a link between you (or relatives of yours) and their company apart from the contract that you were engaged under?
Did the refund cross a tax year for them?

Based on your other threads, it does appear that this story is about moving money around in very complex ways - ways that you refuse to tell us, ways that you are unable to tell us honestly.

It’s no wonder you’re getting the response you have so far. It appears you’re looking for someone to justify what sounds like money laundering/fraud/evasion.

[Yuri F]

Lance,
The thing is - I do know the answer (and there's no any problems with it, especially considering my 50 lines GL {PAYE/NI/VAT/Invoice x12 months + EoY:CT and some minimum office exp.} - hiring accountant for something like this would be crazy), just was looking for a second/third opinion.

Some more background to my case:
Initially payments were made actually as dividend (a bit in advance) because with one of customers we've signed contract and received significant prepayment,
then this covid thing hit the fan and customer balancing on an edge of bankruptcy..
I do understand it's force-majeure and my call was to refund prepayment
Obviously it caused some dilemma on balance sheet.. dividends paid, profits refunded.. >>> this reversal resulting in negative equity..
Technically there's nothing urgent though, CT paid in 9 months (by this time I'll have sufficient profits from other activities to fix minus).. short-term liquidity is solid,
As emergency remediation I've decided reclassify this dividend payment effectively turning it into short-term loan and return principal with interest before end of accounting period.
(additional equity/capital raise would be stupid because financing would come after income taxes)..

thus paranoiac's with tax evasion conspiracies can take a break - standard business practice to correct the situation in a sensible way navigating through non-deterministic world.. although negative equity isn't a problem either, many companies do have it (even some I work with), I just don't like it, it was my executive decision to keep everything up to a better standards (and public commercial records always in ++ territory).

[Lance]

lol, I see you all combined put all efforts trying to advertise accounting industry services...
Good job, not helping though, there's no value in this, get normal job.

Ask your accountant cousin then.

The problem is that you’re asking a complex question, to people who don’t specialise in the subject.
We know it’s sufficiently complex that it needs professional advice.
It also needs some basic fu**ing research of your own.

So I think the answer is that we can’t help you.

If you can’t afford an accountant try another Internet forum that has accountants. Or hope that one of the accountants that do lurk here can offer help.

[Yuri F]

lol, I see you all combined put all efforts trying to advertise accounting industry services...
Good job, not helping though, there's no value in this..

[eek]

So you are doing stuff that HMRC will frown upon without checking how to do it properly

Get an accountant

[Yuri F]

Well guys, so far you're all so cryptic and secretive waiting for someone to beg you..
Not helpful tbh, rather defamatory.
Thanks for trying though.

Any useful response would be like a ray of light in this trolling darkness.


WTFH - I'm homeless living under the bridge + school early dropout, can't afford an accountant, forced to run all by myself (PAYE/VAT, GL, PnL+BS{+CF} for CH&CT Annual filling/submissions) just to keep life interesting a bit, that's why it's micro-entity Ltd on a first place. Just like here living in a backyard shed of my mama's garden

[WTFH]

WTFH

It's kind of related but in a very distant way, my current case is well above £10K (and with interest).
But yes - SA part is kind of pretty straight forward, just trying to get a second opinion on this.
As for business accounting and CT600 side - your links don't yield much of clarification unfortunately.

And what has the professional accountant - who is qualified and paid by your company - told you to do?

[Lance]

I think you've got this whole thing FronttoBack.

or downsideup

[Yuri F]

WTFH

It's kind of related but in a very distant way, my current case is well above £10K (and with interest).
But yes - SA part is kind of pretty straight forward, just trying to get a second opinion on this.
As for business accounting and CT600 side - your links don't yield much of clarification unfortunately.

[northernladuk]

Does anyone know (or had experience) how to handle it properly in a step-by-step way?

I do!

[WTFH]

I think you've got this whole thing FronttoBack.