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6 April deadline

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    6 April deadline

    Hi everybody,

    Two quick questions from a relatively new contractor:

    1) So on my accountant's email it said declare your final dividends before 5 April, which I did.
    But looking at the Minutes of Meeting produced by their system it says interim.
    My business bank takes more than a day to transfer the funds so won't reach me before 6th April, and I heard interim dividends fall into the tax year of the date they get paid (so the day they reach the personal account, 8 April for me)?

    2) Actually I was declaring dividends for both myself and my spouse and stupidly declared less than intended for her, so immediately followed up with another declaration. So now I got 3 declarations (one for me and two for her), and also all saying interim.

    Going to follow up with my accountant but really worried I've screwed something up now

    Anyone got any thoughts?
    Last edited by PK2; 7 April 2020, 19:54. Reason: Less unnecessary info

    #2
    Yep, you've screwed up that will go through as a dividend for the next financial year.
    The Chunt of Chunts.

    Comment


      #3
      Originally posted by MrMarkyMark View Post
      Yep, you've screwed up that will go through as a dividend for the next financial year.
      Damn it, I just didn't see anything in the options to mark them as final. I was hoping it doesn't make a difference, in which case the latter 2 out of these 3 declarations will become final, and one would have to be interim.

      :'(
      Last edited by PK2; 4 April 2020, 22:51.

      Comment


        #4
        An interim dividend falls into the tax year on which it becomes due and payable. This would be the date you receive the payment, however a dividend can also be deemed paid by crediting it to the directors loan account.

        Simple solution therefore is to immediately credit your DLA. This would mean the dividend is paid. The bank transfer can be treated as a payment from the DLA.

        Comment


          #5
          Originally posted by PK2 View Post
          Hi everybody,

          Two quick questions from a relatively new contractor:

          1) So on my accountant's email it said declare your final dividends before 5 April, which I did.
          But looking at the Minutes of Meeting produced by their system it says interim, and also lists my old address (despite having asked them to update it).
          My business bank takes more than a day to transfer the funds so won't reach me before 6th April, and I heard interim dividends fall into the tax year of the date they get paid (so the day they reach the personal account, 8 April for me)?

          2) Actually I was declaring dividends for both myself and my spouse and stupidly declared less than intended for her, so immediately followed up with another declaration. So now I got 3 declarations (one for me and two for her), and also all saying interim.

          Going to follow up with my accountant but really worried I've screwed something up now

          Anyone got any thoughts?
          What business bank account takes over a day to make a payment ?

          To answer my own question = None




          Sent from my iPhone using Contractor UK Forum

          Comment


            #6
            Originally posted by GhostofTarbera View Post
            What business bank account takes over a day to make a payment ?

            To answer my own question = None




            Sent from my iPhone using Contractor UK Forum
            Cater Allen to Lloyds can.
            The Chunt of Chunts.

            Comment


              #7
              I minute my own meetings, that way the minutes are accurate

              Not sure why you need their system to produce minutes? Write your own, file them, and tear theirs up.

              Comment


                #8
                Originally posted by MrMarkyMark View Post
                Cater Allen to Lloyds can.
                Excluding a few niche banks that that no one in there right mind would use for business banking


                Sent from my iPhone using Contractor UK Forum

                Comment


                  #9
                  Originally posted by GhostofTarbera View Post
                  Excluding a few niche banks that that no one in there right mind would use for business banking


                  Sent from my iPhone using Contractor UK Forum


                  True, but I set it up years and years ago, plus its still free to me.
                  It just means you have to be a little more organised when you do things, especially in something like the OPs situation.
                  The Chunt of Chunts.

                  Comment


                    #10
                    As suggested above, just add a journal set for the dividend declared. For example, in FreeAgent:

                    Posting journal sets to create a dividend – FreeAgent

                    It’s then credited to your DLA and can be paid out whenever (the payment being debited from your DLA).
                    Last edited by jamesbrown; 5 April 2020, 09:02.

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