directors salary and accounts issue

directors salary and accounts issue

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Hi Everyone, hope you all had a great christmas.

I have a client that I won recently and they gave me some working files for her payroll as part of the files for me to prepare the annual accounts.  I made a school boy error (I was under a little pressure to get the accounts filed at companies house) and a quick glance of the spreadsheet showed a monthly salary of 500 pounds. Went ahead and prepared the accounts on this basis resulting in a loss.  Salary hadn't been paid so I posted to the directors loan account (showing a large amount owing to the director as this has been going on for years).  Accounts approved via e-mail and filed at companies house.  just checking today before filing with HMRC and it turns out that the spreadsheet had an error on it (I hold my hands up and say I could have spotted it) and in fact the last month no salary was recorded.  Therefore loss is overstated by 500 pounds and directors salary is incorrect.  ok, the accounts would still have shown a loss.  I'm thinking that there are a couple of options

1) the accounts still give a true and fair view, no tax issues, so correct in the following year.  2 years of incorrect accounts.

2) re-file at companies house.  client will not be happy and I could lose them. also seems that the accounts are still CA compliant, so is refiling necessary? 

Any opinions on this greatly appreciated.  my shins are rather sore over the amount of times I've kicked myself today!

All the best for a happy and prosperous 2014!

Replies (2)

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By johngroganjga
30th Dec 2013 19:42

I would correct the error in next year's accounts and not worry any more about it.

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Replying to John Hextall:
By scrasey
30th Dec 2013 19:58

Thanks John, I think I'm my own worst critic!

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