Self Assessment for Dividends taken in March 2017

[leodir]

Hello All,

I am new to this forum - I have a doubt about paying income tax for dividends from March 2017. I had taken a loan from my limited company in March 2017, with the intention of paying it back in less than 9 months. Unfortunately I could not pay it back in 9 months and the company paid corporation tax on the whole amount of profit anyways(which included the loan as well) - this is the corporation tax my company paid in May 2018(for period Sep 2016- August 2017).

Now, I am hoping to just consider the loan as a dividend and pay tax on the whole amount I took as loan(now dividend) in my self assessment this year. However, in the corporation tax paid from September 2016- August 2017(filed/paid in May 2018) , the amount of dividends taken is mentioned as 24k GBP - is it mandatory that the upcoming self assessment for this month(Jan 2019) for ( April 2017 - March 2018) needs to reflect the exact amount as shown in the corporation tax statement filed - given that the actual accounting periods are different.

I do have an accountant, but they really have no clue about all this and as much as I understand , as per law , any issues are my responsibility.

Any ideas if it is OK for me to pay for the additional dividend(ex-loan) in this self assessment even if the last corporation tax filed has a lesser dividend paid out on record.

Thanks,
Leo.

[robbob]

However, in the corporation tax paid from September 2016- August 2017(filed/paid in May 2018) , the amount of dividends taken is mentioned as 24k GBP - is it mandatory that the upcoming self assessment for this month(Jan 2019) for ( April 2017 - March 2018) needs to reflect the exact amount as shown in the corporation tax statement filed - given that the actual accounting periods are different.

You must actively choose to vote a dividend - that is the date it will be classified taken as being under pretty much all circumstances. The only exception to the rule normally is that a dividend cannot be legally voted if there are not retained profits of the business- in which case the dividend is removed when accounts are drawn up so that nit never existed. You should be very precise when drawing funds that are loans to make them as loans and when voting dividends to ensure there is relevant documentation done on the day the dividend is voted if for example funds will then be credited to your overdrawn directors loan. You cannot backdate the timing of dividends if they were not voted at the time.

Ok now that's clear (as mud?) and out the way lets look at your situation.

However, in the corporation tax paid from September 2016- August 2017(filed/paid in May 2018) , the amount of dividends taken is mentioned as 24k GBP

I had taken a loan from my limited company in March 2017, with the intention of paying it back in less than 9 months. Unfortunately I could not pay it back in 9 months and the company paid corporation tax on the whole amount of profit anyways(which included the loan as well) - this is the corporation tax my company paid in May 2018(for period Sep 2016- August 2017).

Ok you seem to have altered the lays of physics (oops) i mean accountancy here.

You either voted dividends in period Sep-16 - Aug 17 or didn't. If the dividends were included in the accounts submitted then they exist and should go on the associated personal tax return - which could be return to 5/4/17 or return to 5/4/18 depending on timing. Nothing is clear to me - perhaps you included a note for something that didn't exist or when you say "mention of dividends" you don't mean that they actually exist - perhaps you made a note to say they were going to exist but then didn't due to you changing your mind or there not being sufficient profits available. all very confusing.

Perhaps you should engage an accountant to sort this out as it sounds like you are a bit out of your depth trying to work this out - no blame in being out your depth - its best not to botch it when there is thousands of pounds of tax at stake.