MVL - which date matters?

[lukas]

Hi,

A theoretical scenario.

Given:
- MVL is started in the current tax year 2019/20,
- the liquidator declares the first distribution date to be 2nd of April 2020 (Thursday)
- a bank transfer of the first distribution is initiated by the liquidator to the personal account of the director on 2nd of April 2020

But the bank transfer only arrives in the personal account on 7th of April (Tuesday).

Which tax year should this first distribution be declared for? 2019/20 because it was declared by the liquidator in the old tax year? Or perhaps 2020/21 because it arrived in the personal bank account in the new tax year?

Thank you.

[ahspooner]

My understanding is that it's the date of the distribution paperwork, as opposed to the date of the money into the account, although I could very well be wrong.

Any of our accountancy friends on here like to comment?

Hi,

A theoretical scenario.

Given:
- MVL is started in the current tax year 2019/20,
- the liquidator declares the first distribution date to be 2nd of April 2020 (Thursday)
- a bank transfer of the first distribution is initiated by the liquidator to the personal account of the director on 2nd of April 2020

But the bank transfer only arrives in the personal account on 7th of April (Tuesday).

Which tax year should this first distribution be declared for? 2019/20 because it was declared by the liquidator in the old tax year? Or perhaps 2020/21 because it arrived in the personal bank account in the new tax year?

Thank you.

[WTFH]

Best bet would be to ask your accountant, although I'd suspect the liquidator knows the answer as well.

But this is a long way to come in 2 weeks - back then you were trying to work out the best route for you to keep contracting.

Is there anything you're not telling us?

[cojak]

I very much doubt that you'll be able to get MVL through in 2 weeks without paying a hefty whack for it (or even then).