How to clear DLA account from previous tax years?

[JPH]

Hello!

Back in 2020 and 2021 we used to use the DLA account for transfers to company directors, from which our accountant would eventually calculate a breakdown between salary & dividend payments when doing the company tax return at the end of each tax year. Since 2022 we’ve stopped doing this, and instead calculate ahead of time what is to be marked as a director’s salary, and what goes out as an agreed company dividend.

However the DLA account still shows existing balances from the 2020 and 2021 tax years, because our previous accountant did not go back into Quickfile after submitting the tax return which showed the actual salary/dividend breakdown (rather than these amounts staying in the DLA account) in order to balance out the DLA accounts at the time marking the payments as salary and dividend respectively.

Whilst it’s really just a cosmetic fix, it would be helpful to get these old amounts “zero’d” out and cleared ahead of the new tax year, so that it’s easier to keep track of the actual “live” DLA account for the current tax year.

What would be the best way to go about clearing these two DLA account balances?

Thanks!
Jamie

[Bagpipe]

I would have expected your Accountant to correct the DLA back in 2021 and perform a year end routine. This is part of matching Quickfile to the final Accounts submitted to the company and HMRC.
You will need to check the opening balances on the Trial Balance for this year and see if this can be tied into last years Balance Sheet. Sounds technical but your Accountant can help here.