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.
- VAT refund 290 3
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- flat rate scheme 55 2
- Turnover on a tax return 521 12
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- incorrect old p60 549 15
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- Deferred income - financial concern no recognised turnover CT600 176 1
- Posting Corp Tax to Sage Line 50 127 1
- Special dividends & CGT 193 1
- Director's Earnings when Drawing from Goodwill profit from Sole Trading Company sale to Ltd Company 169 1
- Networking 345 5
- Bank Interest Held by Solicitor During Divorce 271 2
- US company hiring UK citizens in UK 302 4
- Corrupt excel .XLSX file 151 1
- What VAT to reclaim on van purchased on HP? 331 5
- Professional coaching claimable? 280 2
- IT Contractor 282 1
- Sage instant account codes 199 1
- Mobile phones, directors of micro-companies 299 1