I recorded a small dividend payment (£2000 - tax free) two years ago in my Self Assessed Tax Return but I have only just realised that I did not account for the transaction in Quickfile. Is there anyway of Journaling this to Retained Profits or do I pay an extra £2000 dividend this year and leave a note on file?
Hello @scipio
This is not something the support team could answer unfortunately.
I would recommend speaking to your accountant for professional, tailored advice.
There are some accountants on the forum who may comment so I will leave this thread open for now.
Hello,
Assuming that the dividend was properly declared (the company minutes and the tax voucher were produced), and that it went on your personal self-assessment tax return, then it does need to be entered into the year to which it relates. However, a dividend is just a movement in the Capital and Reserves section. If you wanted it to be 100% correct, you need to create a Dividends Paid account in Capital and Reserves (e.g. account code 3300, and then put through a journal Cr Retained Reserves, Dr Dividend Paid. How did you account for the payment of the dividend in the first place (i.e. Cr Bank, Dr ???). Let me know and I can advise further.
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Hi thanks for the reply.
The dividend is properly identified in my Self Assessment Tax Return. I wrote my own dividend voucher (but have just noticed that QF will produce one automatically!). I have added a note to the voucher to pay in this year accounts just ended and have journaled the money into reducing the Director Loan Account (rather than the Bank since this seems neater).
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