Backdated directors bonus payment

[becky172]

Hi,

I'm about to file my 2004/2005 year end accounts and have realised that I have drawn too much money out of the company during the tax year (£7k). I am a director. Having read your forum I was intending to declare this in my self assessment as a discretionary bonus payment and pay the income tax due accordingly. However, if I do this, then the employees and employers nic's will also need to be calculated and paid. Could you advise please on a) how I declare and backdate NIC's due, and b) whether a penalty will be chargeable?

Many thanks.

[deanshepherd]

I think you need specific advice on how to allocate this payment as to whether it should be earnings, dividend or loan.

Assuming you are the owner/manager you will need to look at the tax impact on both you and the company together.


Dean Shepherd
dean.shepherd@mmi-online.co.uk
MMI Accountancy
www.mmi-online.co.uk