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 on imports and the Flat Rate Scheme for VAT 169 9
- client threatening legal action 1,798 28
- Twenty signs your practice is bad at tax 678 8
- Partially exempt? 239 9
- Reclaiming EU VAT on fuel and expenses 89 1
- First VAT Visit for client 230 4
- Dividend in specie 227 7
- Lorry Drivers 139 2
- Redundancy payment added to p45 101 1
- Partnership registered in error. No activities with view to profit. 100 1
- Mexican student in UK 119 2
- PI insurance for Auto Enrolment 199 3
- Accounting Practice acting as an employment agency 301 12
- payroll software 132 1
- No Tax Returns submitted for last 16 years 1,052 25
- Complicated Company car purchase 112 1
- Pricing 333 10
- Late VAT registration penalty 252 5
- VAT 118 2
- QuickBooks, Xero, FreeAgent and ClearBooks 852 18
- Skandia using wrong address 489
- Does anyone use PS Financials accounting software out there? 278
- FHL, period of grace and Entrepreneur's relief 274
- Employee rewards 258
- Legislation access for part-time sole practitioner? 226
- Rental Property W&T And Equipment 217
- Gift of reversion and lease into trust by two different people - later PPR 214
- EPS Analysis - Change to EURO 213
- Etax Australian 172
- Annual Management Charge Rebates and Self Assessment Tax Return 160