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Overpaid Dividend

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    #11
    Was the dividend an interim or a final. It could make a difference to the payment date and consequent taxation date because of the way finals must be handled.

    In the latter case the payment of the "dividend" could in fact simply have been a short term loan which was in fact repaid by the accounting entries when the final dividend was actually paid. Assuming the directors meeting and resolutions etc all happened and are appropriately minuted in the minute book.

    At the risk of NLUKs (legitimate) wrath it is not uncommon for the minutes, whilst no doubt occurring contemporaneously to be occasionally mislaid temporarily.

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      #12
      Originally posted by ASB View Post
      In the latter case the payment of the "dividend" could in fact simply have been a short term loan which was in fact repaid by the accounting entries when the final dividend was actually paid. Assuming the directors meeting and resolutions etc all happened and are appropriately minuted in the minute book.
      Which is the point. Declaring it as a loan would mean amending the P11d.

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        #13
        Originally posted by Sockpuppet View Post
        Which is the point. Declaring it as a loan would mean amending the P11d.
        Not necessarily. Either the loan is held for a short enough time that no interest is due (so no P11D reporting), or else the Director pays interest on the loan at a rate of 4% (also no P11D reporting required).

        A P11D entry would only be required if (a) interest is due to be paid, AND (b) interest is paid at a lower rate than the HMRC prescribed rate (or not paid at all). This would be the least desirable position, and entirely avoidable.
        2012 CUK Reader Awards - '...Capital City Accountancy, all of whom were outside the top three yet still won compliments from CUK readers for their services' - well, its not an award, but we'll take it! - Best Accountant (for IT contractors) category
        2011 CUK Reader Awards - Top 3 - Best Accountant (for IT contractors) category
        || Check us out at: http://www.linkedin.com/company/capi...ccountancy-ltd

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          #14
          Originally posted by ASB View Post
          Was the dividend an interim or a final. It could make a difference to the payment date and consequent taxation date because of the way finals must be handled.

          In the latter case the payment of the "dividend" could in fact simply have been a short term loan which was in fact repaid by the accounting entries when the final dividend was actually paid. Assuming the directors meeting and resolutions etc all happened and are appropriately minuted in the minute book.
          What is the significance of the dividend being interim vs. final?

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            #15
            Originally posted by Contreras View Post
            What is the significance of the dividend being interim vs. final?
            I believe its Interim = when you declare it is the tax date. Final = when you pay it out is the tax date. Then again I could be wrong.

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