Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
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.
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.
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.
Your last suggestion is workable.
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.
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.
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.
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.
This suggestion as outlined is workable..
I am happy to do a quick chat now
I have sent you an offer.. if you wish to proceed, please accept it and provide your phone number.
Thank you for accepting my answer and offer.