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DIRECTORS SA

DIRECTORS SA

I HAVE A CLIENT WHO WANTS THE LIMITED COMPANY TO PAY FOR HIS SELF ASSESSMENT TAXES AND FOR THIS AMOUNT TO BE TREATED AS AN EXPENSE INSTEAD OF IT BEING PART OF HIS DIRECTORS LOAN ACCOUNT.

I UNDERSTAND THERE MAY BE P11D ISSUES

CAN ANYONE PROVIDE ME WITH ANY GUIDANCE ON HOW ABOUT TO RESOLVE THIS

MATTERS TO MAINLY COVER ARE;

1.P11D

2.CORPORATION TAX

3.SELF ASSESSMENT

THANKS

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By ACDWebb
02nd Nov 2012 10:40

If it pays his liability

it will need to go through PAYE

 

 

and stop SHOUTING

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02nd Nov 2012 10:47

DON'T SHOUT

It is poor etiquette.

This is not a P11D issue.  It is a payment to settle a personal liability of an employee and if he refuses to let it be charged to his DLA, it must be processed through the payroll and be subjected to PAYE tax and Class 1 NIC, both Ee's and Er's.

As part of an employee's pay, it and the associated Er's NIC are an allowable deduction for corporation tax purposes.

It has no effect on his personal self-assessment, other than his pay on his P60 will be higher.

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By mrme89
02nd Nov 2012 12:20

(No subject)

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02nd Nov 2012 19:20

Tell the director the facts

The director obviously doesn't understand so rather than do something that will not help him I would suggest you explain the consequencies. It won't do him any good to pay through payroll unless you wanted to have a payroll in the first place. 

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