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Contractors can’t just make a decision in September to prepare a resolution that says a dividend was declared in March when it actually wasn’t.If discovered, HMRC would find it very easy to overturn it and the contractor would be left in serious trouble.” Strike explains that HMRC will view the date upon which the transaction is entered into the company records as evidence to support the date that the dividend is declared.“Misleading HMRC in any way, shape or form is wholly wrong, and can lead to unintended consequences for the contractor,” he explains.
In which instance you may require more substantial evidence.” Some contractors might be tempted to backdate dividend paperwork in order to avoid the recently implemented dividend tax hikes.
(Jason Mark Anderman illustrates the logistics problem well in this comment to a backdating post on Ken Adams’s blog.) There’s nothing inherently illegal or unethical about backdating contracts, although backdating can certainly be both unethical and illegal, depending on the situation.