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.
- Clearbooks - creating a HP Account 65 2
- Two trades one individual - Vat registration? 303 2
- How to claim subsistence for working away from home 185 3
- looking for a practice consultant 154 2
- The stupidity continues 1,441 73
- Withdrawing company car 116 1
- AML report needed? 185 7
- Bank request To verify Accounts 238 6
- RE assets introduced and rent 90 1
- transactions after account have been closed 316 10
- VAT on work on residential premises (empty for 2 years prior) 86 1
- Land Rover Discovery 3.0 SDV6 255 Comm Auto 2 seat 394 9
- Marketing and email surprises 453 9
- If you've had any issues posting: Please read this 770 26
- What is IRIS World like? 416 10
- Limited company director - other earnings in the tax year 332 5
- Mlom bollocks 275 4
- VT Transactions Stock Issues 122 2
- Non-Europe based but want to do UK taxes 160 1
- CIMA at the age of 35?? 599 11
- Has anyone been affected by the RBS payment breakdown? 448
- Straight line write off of Purchase Goodwill ??? 448
- WIP Software 310
- FRS 102 compliant illustrative accounts for an insurance company 296
- No payroll scheme in place 244
- CGT, PPR and transfer of equity to spouse. 238
- Do subcontractors on work for residential (student accomodation) construction 218
- Is there anything wrong with this? 213
- Small Part Disposal of Property 203
- Uncommercial property business 191