Hi, I'm a contractor/consultant with a LtdCo and a problem. The LtdCo had excess funds in year end 2006 and 2005. When the end of year accounts were prepared for those years my accounting company attributed those excess funds as "bonuses" due to the director (me). I never took payment of these "bonuses", instead I continued to draw a normal salary and pay PAYE&PRSI on that.
I understood (incorrectly) that the LtdCo could roll over excess funds into the next year as a buffer for possible lean-years. I now understand that *any* excess funds at end-of-year must either be recorded as a bonus to me, and hence incurs PAYE&PRSI, or recorded as profit and hence corporation tax is due.
My question is: can the accounts be rectified to reflect these excess funds as profit instead of as "bonuses" due to me?
Any help or advice appreciated.
(I accept that it was my own ignorance and responsibility to be aware of how these things work, so advice along the lines of "you should have done X, Y or Z" is not really that useful).