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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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My Ltd company is 31st March 2015 I took no dividend from

Resolved Question:

Hi,
My Ltd company is 31st March 2015
I took no dividend from 1st April 14 - 31st March 15
On the 1st April 2015 in the accounting year to 31st March 16 I withdraw £30,000 from the bank on the 1st of April 2015. Which self assessment tax year end does this go into?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.

Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your question.

You withdrew money in the tax year ended 5 Apr 2015 and it should be reported in self assessment tax year 2014-2015.

If you have not reported it in that year, you should write to your tax office and request they amend your tax return 2015 and send you revised SA302 tax calculations.

I hope this is helpful and answers your question.

If you have any other questions,please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 1 year ago.
It was in the accounting year to 31st March 2016.Do you put purchases made on the 1st April 2015 (this is in the year to 31st March 2016) in the tax year 5th April 15? What is the point in having an accounting year end if this is the case?
Expert:  taxadvisor.uk replied 1 year ago.

If you have filed your tax return 2015 online then you can make an amendment to it online as the deadline for making an amendment to Tax Return 2015 is 31 Jan 2017.

The company accounting year may fall in two tax years. Although dividends were paid on 1 Apr 2015 in the accounting year ended 31 Mar 2016, for personal tax purposes the dividends were paid in the tax year 6 Apr 2014 to 5 Apr 2015. Had you paid those dividends say on 15 Apr 2015 and not 1 Apr 2015, they would be reported in Tax Return 2016.

I hope this is helpful.

Customer: replied 1 year ago.
I wanted my dividend to go into the self assessment tax year of 5.4.2016. I took the dividend out of the bank account on the 1st April 2015.which is in my accounting year end to 31st March 2016.Is there anyway I can include this dividend in the tax year to 5th APril 2016?
Customer: replied 1 year ago.
Could you put the £30,000 as a shareholders loan in the year to 31st March 2015 then vote the dividend on APril 15th 2015? so the £30,000 dividend goes into the 2016 self assessment tax return?
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your reply.

I wish I could say you can report these dividends in the tax year 2015-16, but that's not the case.

Dividends paid are reported on cash accounting basis..report in the tax year they are paid and not when declared if the tax years are not same.

If you had monies owed to you at the year end 31 Mar 2015 on Director's account, you could use some of it to cover it. You could certainly call the payment a director's loan and make appropriate accounting entries to that effect. In this case, there is no need to report it in tax year 2014-15.

I hope this is helpful.

Expert:  taxadvisor.uk replied 1 year ago.

Your last suggestion is workable.

Customer: replied 1 year ago.
I do not have any credit on the directors loan account so would this still be possible?
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your reply.

You should document it the board minutes that the money is a loan... Provided it is repaid or converted into a dividend at a later date before the end of accounting year, it is not reported as there would be no loan outstanding at the year end.

I hope this is helpful and answers your question.

If there are no more issues, I will appreciate if you would kindly rate my service/accept the service I have provided before you leave the site, to ensure I get credited for it by Just Answer.

Customer: replied 1 year ago.
I thought if you made the directors loan over £10,000 then you were subject to higher tax. How would I document it that the money is a loan in the board minutes?
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your reply..

The loan would be repaid before the end of the company accounting year, therefore, not reported as outstanding at year end.

You should retain a document in the company records to support the fact money withdrawal on 1 Apr 2015 was a loan to be repaid before the year end. This loan is converted into dividend at a later date .. audit trail.

I hope this is helpful.

Customer: replied 1 year ago.
The year end is already gone and I have not paid the loan back so I wont be able to do that.Is there any other way I would be able to put the dividend into the 5th April 2016? even though it was withdrawn on the 1st April 2015 from the bank?
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your reply..

It may be better I explain this to you as an additional service - phone call. This would clarify matters faster.

Please let me know if acceptable.

many thanks

Customer: replied 1 year ago.
is it possible to have a chat tomorrow?I was thinking to document in the board meeting that the £30,000 was a loan on the 1st April 2015. Then later in the year declare that a dividend was paid and then that way the dividend could go into the 5th April 2016.Will you be available tomorrow around 12pm?
Expert:  taxadvisor.uk replied 1 year ago.

This suggestion as outlined is workable..

I am happy to do a quick chat now

many thanks

Customer: replied 1 year ago.
ok thats fine do you want my number
Expert:  taxadvisor.uk replied 1 year ago.

I have sent you an offer.. if you wish to proceed, please accept it and provide your phone number.

Many thanks

taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for accepting my answer and offer.

Best wishes