Confusion between self employment and limited company income
Client set up a limited company on 6th January 2012. He has presented me with his invoices, bank statements etc for the year to date so that I can prepare some management accounts for him. Two points have arisen:
1) I note that his first two invoices, dated 16th January and 1st February 2012, related to work performed by himself in November 2011 and December 2011 for a client, i.e. before the company was incorporated.
Is it allowable to treat this income as company income, given that the invoice was dated post-incorporation? Would expenses be allowable for that period?
2) The company bank account was not set up (due to various delays) until the end of May 2012. In the meantime, all invoices were paid to the client's personal bank account and later transferred to the business account by the client.
I do not think there is a problem with this course of action (the client needs to receive payments from his clients!), but my query is whether I can treat the payment date as the date the client paid the money into the company bank account? Or should there be a directors loan implication as the client did hold onto the money in his personal account for quite some time before making the transfer?
Thanks for any advice.
- Splitting the tax year 21 1
- MONEYSOFT - EARLIER YEAR UPDATE 165 5
- RTI Annual Scheme Query 67 1
- FPS Submission 61 2
- VT accounts licence key 156 4
- PTP software disaster 139 1
- Wrong career 324 13
- Value pricing 619 20
- non resident receiving UK dividends 189 3
- P11d & Medical Ins 86 1
- vat return 198 1
- Underpaid National Insurance 144 3
- Treatment of EU Purchases on Sage 53 1
- Small employers paying people when sick thanks alot! 2,940 31
- Keep receiving RTI late submission notice 142 3
- Director's tax return 115 2
- reporting salary? 237 5
- Other forums 188 3
- Payroll software : RTI submissions 361 17
- CIS repayment shambles finally over? 158 1
- Residential Property Purchase Above £750K 780
- Using Sage with Sofa Categories 532
- Does anyone have an unwanted ICAEW wooden plaque? 399
- Goods shipped inter EU and VAT Reporting 285
- Free Tax Legislation? 234
- Non-Resident Director - UK Tax Position? 230
- Sage 200 and Access Dimensions reviews 221
- Director Loan account operation 221
- transferring simply accounting 2010 from xp to windows 7 213
- Paye procedures for CVA 153