Where to post cash paid by employees for shares
Having a mental moment with Dr and Cr.
My client company issued shares direct to two of it's employees. 5% each. I'm looking at income tax on shares for free.
One of the employees is the son director/shareholder so probably no IT charge as family relationship.
The other employee is now willing to pay the (low) market value for these shares, so as to avoid any IT charge. The 88(2) said £1 per share was paid, not MV. If the employee paid £10 per share now - 2 years later - what do I credit. This cash can only be paid dierct to the company (ie it wasn't a gift from the othe individual shareholders.
The Dr cash I can do!
What do i Cr? Share Premium, seems the correct thing, had it been done properly in the first place. Can this be done 2 years later. Can Share premium suddenly appear in the 2012 accounts without an increase in the issued?
- Am I getting Soft?? 209 10
- Anyone using BTC Accounts Production yet? 33 1
- Wrong tax code 121 5
- Accountancy practices - are you closed over Christmas or do you let your staff take it off? 1,039 31
- How come if you claim benefits you are not entitled to you either have to pay a 50% penalty or are sent to court and either fined or sent to prison (sometimes suspended) and end up with a criminal record. 633 11
- Deferred Tax 455 8
- Mutual Trading - Exempt CT Income - Do I need clearance? 201 1
- You know its over 469 6
- Co. limited by Guarantee now closed 238 1
- Benefit in Kind 216 5
- Foreign pension tax credit relief 136 1
- Petrol expenses for self-employed 219 3
- RTI and corrections to payroll 1,263 14
- Cocaine anyone? 602 10
- Accounting for cash put into Ltd 136 2
- Dutch and Germany VAT 178 3
- can anyone recommend Turkish speaking accountants in London 300 2
- Depression - HMRC penalties case won because of this illness. 490 15
- LTD home office - would HMRC seek to disallow 1,302 8
- HMRC BACK AND FORTH FIGHT ON BTL PROPERTY ALLOWANCES 536 9
- Hive up 506
- Accounting referance change & deficient accounts. 472
- corporate hierarchy 449
- Advice - 288
- Anyone had HMRC refusing to act on EPS database glitch? 232
- WWOOFers 228
- Art Gallery - Splitting a property between business and personal use 214
- Tax liabilities in USA for warehoused products 191
- The booking.com con 167
- UK State pension paid in NZ 161