Here is the situation...
..I took over some business accounts for a client and have been given the breakdown of his director's account which has been divided into sections relevant to the P11d which are clothing, cosmetics, audio and theatre/cinema. The client has a habit of paying for business expenses out of his own money and so these get credited to the director's account however there are transaction that have been entered to the director's account that are also showing on the P11d an example.
DR Balance of £20,655.97
CR of £127.70 for cosmetics - this has been put to the P11d section. However, I know for a fact that this was paid for by the client himself and not the business so therefore it should have never been entered into the director's account and should not be on his P11d - right??
I am sure that I am correct but seeing as this is a reputable accountants firm that have dealt with this previously I am doubting myself.
This is not just the only one there are quite a few, in fact every transaction entered onto the P11d has been paid for by the client personally and not by the business.
Any help will be greatly appreciated seeing as I only have until Friday to get this sorted!
P.s he hasn't received any payment from the business for these items.
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- G'day IPA-IFA 667 11
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- Regaining my qualification 232 2
- Self-Assessment - NIC Exemption 250 2
- Recommendations for tax advice sole practitioner 264 2
- Auto enrolment 207 3
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- Employee Loan 223 2
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- International interest certificate 428
- Stamp Duty on share for share exchange 397
- Sale of business 360
- Advertising services? 262
- NOVA 262
- IRIS Open Books problem 253