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Director appointment backdated

RachelRachel Trusted RegularFMAAT, AAT Licensed Accountant Posts: 349
I have a client whom has a new director on the start of last financial year 01/02/10 but it wasn't added to companies house, is it ok to back date it, it was also missed on the annual return.

HMRC haven't been informed either but dividends are only just about to be issued so they haven't missed a SA.

Will this cause problems?

Comments

  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Being pernickety here, but dividends don't get paid to directors, they get paid to shareholders.

    I don't believe there are any penalties for submitting forms late to CoHo such as the record of a new director or a new allotment of shares (it's not clear which you need, possibly both if they are both a director and shareholder).

    As long as it's just a form catching-up exercise and not trying to re-write history, it shouldn't be a problem. Advise the directors they did have a duty to keep the CoHo record up to date, and do have a look on the CoHo website to see if there are any penalties for filing those forms late before you do it.

    There's no need to inform HMRC, unless the individual taxpayer will have untaxed income he needs to declare.
  • RachelRachel Trusted Regular FMAAT, AAT Licensed Accountant Posts: 349
    Thanks Monsoon

    I believe it is a genuine error as I was always told there were 3 directors but checking companies House there was only 2 listed. I think I will also have to file new allotment of shares as she is not being paid a salary for her work just dividends.

    I have looked for penalties but can't find anything but advised the Director/Secretary that it will be her responsibility etc.
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    That sounds ok.

    Make sure you clear the implications of dividends with the other shareholders first - if they think she's just a director, then you need to explain the difference and all the implications of splitting the ownership of the business.
  • RachelRachel Trusted Regular FMAAT, AAT Licensed Accountant Posts: 349
    Hmmm bit confused now, just looked at the shareholders on companies House and it states 2 shares at 2.00 unallocated.

    Does that mean that the original shareholders are even official?
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