but has only got 1 bank a/c and uses this for all three companies!
I suspect this is going to get very messy when preparing his a/cs etc (he's coming to see me tomorrow night with all his paperwork) - has anyone got any advice to help me separate the transactions easily??
Many thanks (I suppose I ought to think more work - more fees, but have got loads already booked in).
Joanne
Joanne Hewitt
Replies (4)
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nightmare!
Hi Joanne
Nightmare. Just wondering, is it technically legal to trade like this? From companies house view? How about VAT?
As far as splitting it up, it depends how similar the businesses are. I have some sole-traders like this, but it is easy to see what is what from the invoices (in & out). I would probably make a simple list in excel and then mark each item as trade a, b, c, then pivot table it to sort them out.
Hope this helps. Don't hesitate to e if need any more info.
Best wishes
Paul
Agreed Nightmare
I am surprised that the bank would allow a Limited company to set up a bank account without sight of a certificate of incorporation. The company whose name was on the bank mandate would therefore be the owner of the bank account and the balances contained therein. Any money that is paid in re. the other company's invoices will be intercompany loan account balances owing/owed.
I assume that the client simply asked for the cheques to be written out to the wrong limited company name otherwise the bank would not have cleared the cheques.
While I think about it, if there is corp. tax payable you need to watch out for the associated company limits as these could, potentially be divided by 3, so a profit of only £18,000 may need to be taxed at the full 19% and not the marginal rate - something that is easily overlooked when facing a nightmare like this. Good luck and make sure that you charge them a lot of money because, if you sort this little lot out you will have earned it.
Are we getting our terms confused?
The original poster suggested her client is a sole-trader with 3 companies. Do you mean 3 trades/businesses? As oppose to 3 limited companies?
Makes the solution a little less problematic.