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.
- Payment on account reminders 124 2
- Stand alone practice management software 1,741 26
- Allocation of income from property 660 23
- RTI and Advances to Employees 396 10
- CTA 254 3
- AIA/Capital Allowances 347 11
- Selling to USA, Delivery to Poland, VAT? 121 3
- Anybody got through to VAT today? 42 1
- Anyone else experiencing issues with sage 50 payroll 768 22
- Time values in Excel 158 3
- No more tax returns... 1,383 12
- bookkeeping system 562 8
- Spanish Assets taxation - UK Residence 178 3
- HELP CT Return filed but doesnt match up HMRC's AP 230 6
- International VAT 129 2
- Office 365 vs. Google apps 656 9
- Insurance payout 148 1
- Non-UK resident - where to pay income tax? 538 11
- RTI / P11d 189 2
- Are any of you members of The Institute of Financial Accountants - Accountnats certificate 1,113 21