Director forgot to take salary for 2013/2014
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?
- Trade creditor journal 16 1
- Working out private usage for a Taxi Driver? 379 9
- How much of your work is admin? 636 6
- HMRC Distraint 76 1
- TaxCalc Accounts production 134 2
- Fines for filing 12 months of FPS on one submission 215 3
- Running two businesses from the same premises 413 5
- HMRC BACK AND FORTH FIGHT ON BTL PROPERTY ALLOWANCES 115 2
- Invest in ''buy to let'' property 1,367 42
- Nominal Ledger 392 11
- Gave wrong info to client about tax due 591 20
- Base value unavailable re. Capital Gain 191 2
- Old CGT loss 217 3
- Gov.UK = NOT OK! 208 3
- Paper tax return 169 4
- Start up allowance? 389 12
- Will I need to resign? 239 1
- Penalty for late PAYE registration? 255 3
- AIA or IFA 460 7
- Surely not? 472 10