If a Director puts lots of personal expenses like personal travel, personal entertaining and holidays etc through his company bank account is it much better just to disallow it all and bung it all through the Directors Loan Account rather or am I missing something?than putting these costs through the books as travel and entertainment expense and then doing P11Ds etc? I can't see there are any tax advantages to putting the expenses and benefits through and then doing a P11D .. or am I missing something?
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I think what you have here is a client who needs re-educating, or dumping. He must surely know that all these expenses are not allowable as tax deductions as they have nothing to do with his business. He must also know that by continuing to claim personal expenditure against his company he is effectively trying to put one over on the tax man, and he is expecting you to make it happen.
If he does not realise that the expenses are just added back and make no difference to his tax position and serve no other purpose than to increase the amount of time it takes to sort out his books, then he needs to be told this, and told to stop doing it.
If he doesn't stop doing it, or somehow expects you to allow these deductions then you must just tell him you can no longer act for him, as you are then in an untenable position.