New Company and Club with Paypal Account
I have been asked to prepare accounts for a limited company for its first year of trade. It has modest income from membership subscriptions and more substantial income via transfers into the company bank account from a paypal account that one of the directors has access to. The paypal account was set up some time before the company incorporated and is used by a club (that bears the same name as the company) but which existed before the company came along. The director is a founder of the club which is run by an ad-hoc committee and probably has no written constitution. The committe and club members are, to my knowledge unaware that some of the business is now being conducted through a limited company, part owned by this director.
The director insists that the paypal account - through which other receipts and payments are also made is an account in the company's ownership- or should become so.
My view is money transferred into the company via paypal is trading income and any internal paypal transactions form no part of the company accounts.
Although I don't think there is any untoward activity, Is there also a potential MLR issue?
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