Would there be any implications on amending sa 09/10

Rachel

Hello

Just exploring something so bear with me but any advice gratefully received.

New client year end 01/10 - 30/9.

Dividends for this year appear in £45k mark. So for self assessment this relates to 2 years 09/10 & 10/11. Dividends were taken monthly as drawings but nothing was included in the 09/10 return.

What are the implications if I amend the dividends figure for 09/10, am I allowed to? Would there be a fine. Or do I need to have all the dividend in 10/11.

Thanks

Rachel

groundy

There is no fine for amending the 09/10 tax return. Just write to the local tax office amending the necessary box. The only implications is the twelve month period HMRC have to investigate the return will commence from the date of amendment as opposed to 31/01/11.

clegganator

Also there may be additional tax to pay as the dividend tax credit wont cover the tax payable on them if it is in the £45k per year region... Interest as well as the tax was payable a while ago...

Rachel

Thanks for your response, the 45k would be split over 2 years so therefore won't be over.

My main question is, the dividend was taken in 09/10 self assessment year aswell as 10/11 but the accounts date is 01/10/09 - 30/09/10 showing £45k dividend. The previous accountant didn't file any dividends but as they were taken then surely I am ok to amend but I am just cautious of opening a can of worms.

Any help gratefully received.

groundy

Rachel

If the dividend was taken during 09/10 tax year then it is fine to go back and amend the personal tax return as long as you do before 31/01/12.

As long as the dividends in 09/10 do not take total personal income over HR threshold then there will be no additional tax and therefore no penalties.

It really is as simple as you think it is.

Rachel

Super thank you very much