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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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I have to prepare the Tax return limited company. This is

Customer Question

Hi,I have to prepare the Tax return for a limited company. This is the second set of accounts and the company was dormant for this year, but the balance sheet for the previous year shows £1446.00 in bank which I would like to reduce to £1, assuming the amount of £1445 was withdraw as dividends.
Can you please advice me how to complete the Tax return to get the result of £1 cash at bank and in hand.
Thank you
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

The first 5K of dividends in any one tax year after 6 April 2016 is tax free so you just pay the GBP 1445 out to yourself. Dividends do not affect the Corporation Tax (CT) computation at all so the return will be simply zeros. there are some glitches in the on line CT return which you may have to fudge with the odd quid, but do not worry about that.

I do hope that I have shown you a way forward in this matter.

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