Accounting is a matter of fact; transactions need to be accurately recorded as they happen. They certainly cannot be re-invented at a later date to suit what you meant to happen.
Your accounting records should be kept up to date and should reflect exactly what occurred. This is especially important when it comes to dividends. The past cannot be re-created.
If you take a dividend, record it as a dividend.
If you make a salary payment, record it as a salary payment.
If you are reimbursing yourself for some out of pocket expenses, record it as expenses.
If you are talking a loan, as a director, from the company then record it as a Director’s Loan.
If you want to clear a director’s loan by declaring a dividend then record the dividend transaction and post a transaction to clear the director’s loan.
That way your accounts will be correct and the figures can easily flow through to your self assessment; there’s no confusion about the transactions.
You cannot reinvent past accounting entries once you’ve seen your tax bill.
Staying on top of your figures through an efficient accounting system is sensible and will avoid any potential issues later with HMRC should they decide to query your accounts and tax returns.
Operating in this way will of course make you ready for Making Tax Digital if or when it happens.
