I have just been told by a client that one of the two directors wants to draw out the £10k from the company that he paid for the company two years ago.
The only problem is that this is the first I have heard of this transaction and it hasn't been reflected in the accounts. I took this client over last year and did not do the accounts in the year of change.
One old director sold to new director for £10k. The new director paid this personally and it has never hit the accounts of the company. The new director now wants this cash back from the profitable company.
Should this £10k that was paid ,that was for all the assets of the company but around £9,000 was goodwill, have been brought into the company accounts with the £10k showing as owing to the new director?
If so, can i bring this in now?
- Thinning income 353 4
- Allowable for Corporation Tax? 257 6
- Bank Statement Scanning Software? 145 2
- Work to Rented Business Premises 167 1
- Not a question but made my day 1,171 23
- Directors, service companies and national minimum wage (NMW) - Profit extraction 385 11
- Employee leaving mid month and Payroll Manager 1,151 24
- IHT400 or IHT205 - disagree with solicitor 138 1
- Amending 13-14 sole trader return to reflect increased profit in 14-15 272 4
- I forgiven loan an Output? 170 2
- V T Software 229 2
- How do I know if I have to apply a reverse charge mechanism 143 3
- SA302's - What's the deal? 352 4
- tax credits 293 4
- Past rental expenses 133 1
- What do do about VAT? 553 15
- Buying a company for £2000 from owner how it works? 298 5
- Vat Exemption moving to a partnership 195 2
- Audacity 1,329 22
- Seeking advice: Paying Funeral Costs 696 8
- NHS finance professionals 599
- Auto Enrolment and Foreign employers 390
- Foreign Pension Contribution 363
- vat gross profit percentage margins 334
- Employee's statement of sickness (SC2) form - no longer available as downloadable pdf 325
- Pre Season Invoice dated September how do you treat the VAT as not due until May 16 306
- SWAT AML v Anti Money Laundering Compliance Plus (AMLCP) 274
- Does pension term assurance count for unused relief purposes? 232
- Quickbooks online filing of VAT 206
- IFA income recognition & reporting 200