This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Dividends credited to directors’ loan accounts were backdated

By Mark McLaughlin, March 2023

A dividend purportedly made in July 2015 was not actually made until July 2016 when positive action was taken not just to declare the dividend but to allocate it to reduce an overdrawn directors’ loan account and record it in the 2015 accounts, notwithstanding that entries were not inputted into the company’s accounting records until 12 April 2017. 

Summary 

A dividend purportedly made in July 2015 was not actually made until July 2016 when positive action was taken not just to declare the dividend but to allocate it to reduce an overdrawn directors’ loan account and record it in the 2015 accounts, notwithstanding that entries were not inputted into the company’s accounting records until 12 April 2017. 

Background 

The defendants (Mr and Mrs R) were the only directors and shareholders of a company (Rut5) and ran it from its incorporation on 21 February.

Subscribe to the McLaughlin’s Tax Case Library to get instant access
to the Tax Case Library.
14 day free trial , 90 day money back guarantee
Subscribe

Related or similar articles

Company payment to employee benefit trust and subsequent loan did not constitute earnings of director and shareholder
By Mark McLaughlin, June 2026
HMRC’s information notice to taxpayer must be amended to make it less extensive
By Mark McLaughlin, April 2025
Rugby union commentator’s services fell within IR35
By Mark McLaughlin, November 2024
Appeal against tax assessments stayed behind assessments against information notices
By Mark McLaughlin, June 2023
Discovery provisions did not apply for the purpose of assessing the high-income child benefit charge
By Mark McLaughlin, February 2023