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.
- Small company audit 199 8
- Sage valuing foreign bank balances 202 5
- What can my client claim r & d on? 210 5
- Redundancy pay for directors? 147 4
- Problem partnership fees 118 1
- Car financed by employee 101 1
- Potential Customer Under VAT Threshold 96 1
- Undisclosed income 165 3
- Leaving Flat Rate Scheme for VAT 294 8
- Can I take action against my accountant for incompetence? 1,760 46
- DEATH OF A SHAREHOLDER NO SHAREHOLDER AGREEMENT 243 4
- Private Investment Company 138 1
- How familiar are accountants with community interest companies? 117 1
- New company - form a group? 199 3
- Has anyone read the implications of the Lisbon treaty? 799 17
- CIC Company 434 2
- What are options for non CA firm 2,709 57
- Is this a scam? 821 8
- Companies Made Simple Dashboard? 163 1
- Employment allowance (again) :( 369 2
- Property exchange - 8-year legal delay following fall-out 605
- Cancelled 350
- SAGE Payroll Data for Import to MS Dynamics AX 337
- Cancelled 288
- Have you staged yet for auto enrolment? 260
- Probiz 247
- VAT on non-profit making clubs (ECJ VS West Dorset Golf Club) 203
- Phishing emails purporting to be from CIPFA? 188
- Car leasing scheme 184
- Free-standing washing machine - unfurnished lettings 178