I have a company who has a May 2014 year end. It is the first accounting period for the company and they have just come to me this week(after the company's year end).
The director would like to show a salary for 2013/2014. Currently Software shows losses of £20,000 in accounts, so dividends cannot be paid. Co has 3 3employess on payroll. Client has put money in company himself, so company owes him around £15,000.
Have discovered that P35 for 2013/2014 has not been submitted yet!!! Now based on this info, I was wondering what his options are if he wanted the accounts to show a salary. Can the accounts for the first year of the company show directors fees accrued of approx. £9,000 (so no NI or tax) (so not actually paid). However with RTI, as P35 has not been submitted for 2013/2014, the only amendment required would be to file a revised RTI for April 2014 showing a month 12 directors accrued pay of approx. £9000. Is this amendment going to be problematic with HMRC, be flagged up in any way? As long as salary is paid 9 months after the year end, it should be a tax allowable expense.
If it was shown as a bonus, would there be the same problem with RTI as accruing director remuneration? Or is there a simpler way of accounting for salary opportunity for previous tax year forgone?