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.
- Where has Portia gone? 5,118 113
- Help 227 11
- What do people do with signed accounts/engagement letters/tax returns? 286 10
- Dividends from UK plc - tax years and dates 119 2
- Overlap profit 301 7
- Moneysoft or Sage payroll with auto enrolment? 326 6
- RTI Payroll ID 2,072 25
- What is the correct Vat treatment and rate to use to record a business stay in a hotel in the EU? 146 1
- Payments on account 196 2
- Recurring Revenue/Costs occurred before registering, how do I handle this? 105 1
- What do your junior staff do? 536 7
- OMG HMRC !!!! Employ some ppl!! 667 12
- Keeping disastrous accounts 426 5
- Is my client risking reputational damage? 542 10
- VAT Exemptions for Dance Education 139 1
- Getting fees, getting harder? 3,948 74
- In pratice using part time accountants 370 3
- On the high seas 120 1
- Entrepreneurs Relief Shares Received as Part of Divorce Settlement 149 2
- Spousal transfer and PPR 863 34
- Services via intermediaries and new HMRC reporting requirements 854
- How hard is it to reduce a code? 445
- Sanzar 344
- How do you do it 338
- Digital marketing focus group 315
- Kashflow balance sheet difference 296
- Bed & Breakfast trade via Limited Company 210
- Fit for purpose 203
- new investor structure 200
- VAT Registration 181