Reclassify past Director's Loan as Dividends?

[maverick18]

Hi,

Can I reclassify the amount withdrawn in March 2011 as Dividends instead of Directors Loan?

I use HSBC Business Banking and while withdrawing the amount, I've used 'Directors Loan' as the purpose of withdrawal and hence it reflects as such on the Company Bank A/C Statements.

Cheers

[SueEllen]

I don't put a purpose in my withdraws on my bank statements, I just put it in the account records. You do have account records as well don't you?

And Directors Loans can be converted into dividends no problem.

However remember Directors Loans are suppose to be you lending the company money.

[MarillionFan]

Assuming you haven't done your accounts for last tax year I don't see why you dont just reclassify it. I wait until after the year has finished to decide what I should have taken.

[Wanderer]

Assuming you haven't done your accounts for last tax year I don't see why you dont just reclassify it. I wait until after the year has finished to decide what I should have taken.

What if you've taken too much (putting you into the higher rate tax bracket). Can you just classify some of it as a loan and the rest as a dividend?