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Default Where to report Dividends when filing company accounts and tax return

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    #11
    Despite your historical posts on all this, I'll have a go ...

    As others have stated, the VAT FRS ‘profit’ should be within Turnover on the P&L account – it is often termed ‘irrecoverable VAT’ on detailed accounts working sheets for Turnover (but these details are not necessarily submitted to any authorities outside YourCo board/shareholders - you).

    Note your ‘staff costs’ may be zero (maybe you really didn’t want any PAYE/NI/pension/other benefits this year, perhaps justified for a quiet year or just finishing/starting out, however I don't really know for your previous nationality questions) but should typically include any accountant/legal services YourCo has bought, although perhaps not if they are part of a business insurance package (which go under non-staff admin costs). Similarly, maybe your VAT was fully paid earlier in the year with nothing outstanding at year end?

    For the dividends, also as others have noted, your figures currently show you have no ‘dividends paid out in the accounting period’ (i.e. no interim/full dividends were actually paid) under the P&L account – otherwise your Balance sheet sums wont match. Maybe you will declare and pay any 'full' (no longer 'interim') dividends for last year in this year? Basically, a balance sheet is the sum of actual 'cash at bank and in hand' (at year end) +/- creditors & debtors, matched ('balanced') with the sum of the P&L + shares.

    As a complete aside, when you finally get there, an exact match for the Balance sheet sums is essential on the HMRC website, but their website workings have various whole-pound roundings that normally throws these sums out by a pound or so, but you have to get it exactly right, but that means 'adjusting' one or two of the P&L figures by 49p or whatever, but ... but that’s just annoying!

    Overall, how everything (including your various ‘other charges’ such as T&S expenses - all subject to their many associated HMRC rules) is accounted for and reported will depend upon the accounting policy you have chosen to adopt for your company accounts (typically start with the Financial Reporting Standard applicable to the Micro-Entities Regime (FRS 105, July 2015) – worth a quick skim read at least, alongside the Companies Act 2006 itself, to understand a director’s personal legal duties and obligations). As others strongly advise, you should really consider paying for a suitably-experienced accountant, partly because they have their own indemnity insurance if they misadvise you, but mostly because they should save you a considerable amount of time reading about it all, and save considerable time/money exposure later if/when accounts are challenged. Perhaps your business value leads you to think an accountant isn’t justified, and you may be correct, but it’s your decision to make and risks to run.

    BTW, I am not a qualified accountant, and these are just my rambling thoughts as I meander towards MyCo’s accounts - but I have been contracting since the 90s, and been troubled by accounts/accountants a few times, which forces it all to be much clearer.
    Last edited by MrHappy; 18 June 2017, 20:54. Reason: typos

    Comment


      #12
      Originally posted by Darren at DynamoAccounts View Post
      Oh where to start..............VAT liability in current liabilities, dividends paid, directors loan, etc.



      Your bottom figure of £3201 would be correct but would throw out your balance sheet. Have you not paid out the dividends as yet?

      Also, as mentioned before you've no liability for VAT within the current liabilities section. Do you now owe HMRC anything for VAT at the year end? Is it all paid up?

      As @NLUK would say, ask an accountant

      Hi,
      you are right and I amendmed the balance sheet to accomodate the figures as it had to be including Dividend in it.

      Regarding the VAT everything was pay up during the period, actually I'm not registed anymore because of the new FRS rules.

      Thanks for your help!

      Comment


        #13
        Originally posted by MrHappy View Post
        Despite your historical posts on all this, I'll have a go ...

        As others have stated, the VAT FRS ‘profit’ should be within Turnover on the P&L account – it is often termed ‘irrecoverable VAT’ on detailed accounts working sheets for Turnover (but these details are not necessarily submitted to any authorities outside YourCo board/shareholders - you).

        Note your ‘staff costs’ may be zero (maybe you really didn’t want any PAYE/NI/pension/other benefits this year, perhaps justified for a quiet year or just finishing/starting out, however I don't really know for your previous nationality questions) but should typically include any accountant/legal services YourCo has bought, although perhaps not if they are part of a business insurance package (which go under non-staff admin costs). Similarly, maybe your VAT was fully paid earlier in the year with nothing outstanding at year end?

        For the dividends, also as others have noted, your figures currently show you have no ‘dividends paid out in the accounting period’ (i.e. no interim/full dividends were actually paid) under the P&L account – otherwise your Balance sheet sums wont match. Maybe you will declare and pay any 'full' (no longer 'interim') dividends for last year in this year? Basically, a balance sheet is the sum of actual 'cash at bank and in hand' (at year end) +/- creditors & debtors, matched ('balanced') with the sum of the P&L + shares.

        As a complete aside, when you finally get there, an exact match for the Balance sheet sums is essential on the HMRC website, but their website workings have various whole-pound roundings that normally throws these sums out by a pound or so, but you have to get it exactly right, but that means 'adjusting' one or two of the P&L figures by 49p or whatever, but ... but that’s just annoying!

        Overall, how everything (including your various ‘other charges’ such as T&S expenses - all subject to their many associated HMRC rules) is accounted for and reported will depend upon the accounting policy you have chosen to adopt for your company accounts (typically start with the Financial Reporting Standard applicable to the Micro-Entities Regime (FRS 105, July 2015) – worth a quick skim read at least, alongside the Companies Act 2006 itself, to understand a director’s personal legal duties and obligations). As others strongly advise, you should really consider paying for a suitably-experienced accountant, partly because they have their own indemnity insurance if they misadvise you, but mostly because they should save you a considerable amount of time reading about it all, and save considerable time/money exposure later if/when accounts are challenged. Perhaps your business value leads you to think an accountant isn’t justified, and you may be correct, but it’s your decision to make and risks to run.

        BTW, I am not a qualified accountant, and these are just my rambling thoughts as I meander towards MyCo’s accounts - but I have been contracting since the 90s, and been troubled by accounts/accountants a few times, which forces it all to be much clearer.
        Hi,
        I was reading your post in detail and took into consideration most of this useful information, I think my BS is "balanced" now and every pence in its place, thank you very much for your help.

        Regarding why my staff cost is 0 is basically because at the beginning of the financial period I took advice for an accountant and he told me that because I won't know how many days I will stay in UK until the end of the year, I can not guaranty of my UK residency so I was better off taking dividends instead of declaring myself as employee and having salary. Not sure about this either, he didn't explain me how much this decission might cost me? (what I know if that his 1 hour advice cost me £180)

        Regards,
        iandres.

        Comment


          #14
          pls help

          Originally posted by iandres View Post
          Hi,
          I was reading your post in detail and took into consideration most of this useful information, I think my BS is "balanced" now and every pence in its place, thank you very much for your help.

          Regarding why my staff cost is 0 is basically because at the beginning of the financial period I took advice for an accountant and he told me that because I won't know how many days I will stay in UK until the end of the year, I can not guaranty of my UK residency so I was better off taking dividends instead of declaring myself as employee and having salary. Not sure about this either, he didn't explain me how much this decission might cost me? (what I know if that his 1 hour advice cost me £180)

          Regards,
          iandres.

          Hi iandres,

          Im trying to complete my forms, but numbers do not add up and unfortunately cant afford to pat £1k for a professional accountant. Would you be kind and share your final numbers on P&L ns Balance Sheet.
          Your help would be much appreciated!

          Comment


            #15
            Originally posted by joannak View Post
            Hi iandres,

            Im trying to complete my forms, but numbers do not add up and unfortunately cant afford to pat £1k for a professional accountant. Would you be kind and share your final numbers on P&L ns Balance Sheet.
            Your help would be much appreciated!
            Open a mettle bank account that gives you a free agent account.

            Enter the details into freeagent and that will give you the figures.
            merely at clientco for the entertainment

            Comment

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