Dividend with VAT

[sali123]

Hi,I have withdrawn dividend along with VAT from my company,can this be considered as earnings for my extension?

Agency pays for my limited company ,for example 2000 pounds +VAT @20%(400) =2400GBP credit to the company account.

Can I withdraw total 2400 GBP as a dividend or should I leave the VAT amount in the bank and to withdraw remaining amount as a dividends so that VAT can be paid during due date?

Please let me know which is the best option for my tier1 extension.

thanks

[riteshgaur]

Hi

You cannot withdraw VAT and show as income, because ultimately that VAT needs to be paid back to HMRC (like quarterly).

Ritesh

[sali123]

Does that mean I can't show as earnings for those months I transferred 95% of the payment received which includes VAT amount as well?

thanks