LLP Accounts - help !!!
Hi, first time preparing an LLP set of accounts and having run the disclosure check I seem to be left with one query to resolve. The partnership agreement states that the partners receive a salary of X plus the partnership pays the tax on the salary. I appreciate that the salary is treated as members remuneration charged as an expense but what do I do about the tax element which is paid after the year end. Do I debit the salary expense and credit a tax reserve in the accounts or simply reflect the tax elemant in the profit allocation and debit the salary to drawings when paid. Essentially if I credit a tax reserve I end up with a lower capital account.
Any help would be greatly appreciated.
- Xerocon 2016 1,023 24
- Entrepreneurs' Relief upon sale of a cash rich company 2,192 41
- buying asset and settling vendor's debt 237 6
- Posting invoices with balance brought forward 254 7
- HMRC now overriding SA bank repayment details on tax returns 601 12
- Personal Tax 502 11
- USA Tax Query 176 1
- Disengagement Help! 1,661 25
- Is HMRC Basic Tools basically wrong? 946 6
- Expenses paid by director (the comapny owner) 300 2
- Write an article on latest tax changes for landlords. 602 18
- Corrupt Excel File 675 10
- Website costs (intangible assets) tax relief 355 4
- Is Xero payroll as rubbish as I suspect it is? 1,976 43
- Locked Out of HMRC Online Account - HMRC Not Responding 290 2
- Re-Training costs - tax reief 416 7
- Capital Gain on Share Disposal with Held Over Gains 181 1
- 64-8's amazingly quick 346 4
- last minute request 525 5
- VAT - Check on clients business 1,254 46