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.
- property capital gains 173 2
- Transferring DLA between Directors 175 1
- Private doctors - Ltd company vs partnership 1,170 13
- Tips on meals 195 2
- Buy Samsung Galaxy Note 5 518 10
- Rental losses on jointly owned property 180 3
- Personal Tax 740 13
- Overpaid In Employers NI - RTI EYU for hundreds of employees 209 2
- Stumped - IHT 166 2
- Leaving the VAT FRS Scheme or trying to stay as long as possible? 414 6
- No PAYE Registration but need auto enrolment 475 11
- HMRC now overriding SA bank repayment details on tax returns 1,288 33
- Credit management tools 157 1
- Write an article on latest tax changes for landlords. 773 20
- Incorporate to utilise dividend allowance next year? 414 7
- CGT and primary residence 188 1
- Marriage Allowance 293 3
- S455 and February year ends 344 7
- HMRC having technical difficulties 898 18
- Closing down loss-making company 464 5