Director forgot to take salary for 2013/2014

Hi

I have a company who has a May 2014 year end. It is the first accounting period for the company and they have just come to me this week(after the company's year end).

The director would like to show a salary for 2013/2014. Currently Software shows losses of £20,000 in accounts, so dividends cannot be paid. Co has  3 3employess on payroll. Client has put money in company himself, so company owes him around £15,000.

Have discovered that P35 for 2013/2014 has not been submitted yet!!! Now based on this info, I was wondering what his options are if he wanted the accounts to show a salary. Can the accounts for the first year of the company show directors fees accrued of approx. £9,000 (so no NI or tax) (so not actually paid). However with RTI,  as P35 has not been submitted for 2013/2014, the only amendment required would be to file a revised RTI for April 2014 showing a month 12 directors accrued pay of approx. £9000.  Is this amendment  going to be problematic with HMRC, be flagged up in any way? As long as salary is paid 9 months after the year end, it should be a tax allowable expense.

If it was shown as a bonus, would there be the same problem with RTI as accruing director remuneration? Or is there a simpler way of accounting for salary opportunity for previous tax year forgone?

 

Many thanks

 

Comments
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First things first

johngroganjga |
johngroganjga's picture

He doesn't have any income

Arabita |

Paying a bonus would not save his allowances

Paul D Utherone |
Paul D Utherone's picture

Do you fully understand PAYE & RTI?

Euan MacLennan |
Euan MacLennan's picture

I meant End of year

Arabita |

Forgetfulness

andy.partridge |
andy.partridge's picture

Yes Andy, that is my concern,

Arabita |

You have answered your own

johngroganjga |
johngroganjga's picture

Forgot?

tsp.Shaun |
tsp.Shaun's picture

Surely

Paul D Utherone |
Paul D Utherone's picture

Refer to an earlier thread

JimH |
JimH's picture

Exactly!

Broniec Associates |

Ugh!

andy.partridge |
andy.partridge's picture

To be fair ....

lionofludesch |
lionofludesch's picture

1984 or 2014 World Cup

lionofludesch |
lionofludesch's picture

Pointless

cparker87 |

.

mrme89 |
mrme89's picture

Disadvantage

andy.partridge |
andy.partridge's picture

No RTI submissions since incorporation

Arabita |

@ Arabita [OP]

fawltybasil2575 |

Invention

andy.partridge |
andy.partridge's picture

Sorry I am hypothesing

Arabita |

Sorry I am hypothesing, the

Arabita |

@ Arabita

fawltybasil2575 |

Im hypothesing that IF he

Arabita |

@ Arabita

fawltybasil2575 |

The short answer

Fitzz |

The worst accountants

andy.partridge |
andy.partridge's picture

With good reason

stepurhan |
stepurhan's picture

Thanks all for the comments,

Arabita |