Hi everyone, this post interested me as i'm in the same position the LTD company is a new start up and so cant pay a regular paye wage to me at the moment... I presumed that I should post self employed invoices for my labour to code 6002 sub contractors is that incorrect? Im using sage line 50 V12. Really appreciate any guidance im struggling to get my head around it all, many thanks.
My COA...
N/C Name
0010 Freehold Property
0011 Leasehold Property
0020 Plant and Machinery
0021 Plant/Machinery Depreciation
0030 Office Equipment
0031 Office Equipment Depreciation
0040 Furniture and Fixtures
0041 Furniture/Fixture Depreciation
0050 Motor Vehicles
0051 Motor Vehicles Depreciation
1001 Stock
1002 Work in Progress
1003 Finished Goods
1100 Debtors Control Account
1101 Sundry Debtors
1102 Other Debtors
1103 Prepayments
1200 Lloyds Bank Current Account
1210 Bank Deposit Account
1220 Building Society Account
1230 Petty Cash
1240 Company Credit Card
1250 Credit Card Receipts
2100 Creditors Control Account
2101 Sundry Creditors
2102 Other Creditors
2109 Accruals
2200 Sales Tax Control Account
2201 Purchase Tax Control Account
2202 VAT Liability
2210 P.A.Y.E.
2211 National Insurance
2220 Net Wages
2230 Pension Fund
2300 Loans
2301 Director Loan
2310 Hire Purchase
2320 Corporation Tax
2330 Mortgages
3000 Ordinary Shares
3010 Preference Shares
3100 Reserves
3101 Undistributed Reserves
3200 Profit and Loss Account
4000 Sales Web Design
4001 Sales Hosting
4002 Sales Seo & Remote Support
4009 Discounts Allowed
4100 Sales Hardware Repairs
4101 Sales Hardware & Software
4200 Sales of Assets
4400 Credit Charges (Late Payments)
4900 Miscellaneous Income
4901 Royalties Received
4902 Commissions Received
4903 Insurance Claims
4904 Rent Income
4905 Distribution and Carriage
5000 Materials Purchased
5001 Materials Imported
5002 Miscellaneous Purchases
5003 Packaging
5009 Discounts Taken
5100 Carriage
5101 Import Duty
5102 Transport Insurance
5200 Opening Stock
5201 Closing Stock
6000 Productive Labour
6001 Cost of Sales Labour
6002 Sub-Contractors
6003 Scripts & Coding
6100 Sales Commissions
6200 Sales Promotions
6201 Advertising
6202 Gifts and Samples
6203 P.R. (Literature & Brochures)
6900 Miscellaneous Expenses
7000 Gross Wages
7001 Directors Salaries
7002 Directors Remuneration
7003 Staff Salaries
7004 Wages - Regular
7005 Wages - Casual
7006 Employers N.I.
7007 Employers Pensions
7008 Recruitment Expenses
7009 Adjustments
7010 SSP Reclaimed
7011 SMP Reclaimed
7100 Rent
7102 Water Rates
7103 General Rates
7104 Premises Insurance
7200 Electricity
7201 Gas
7202 Oil
7203 Other Heating Costs
7300 Fuel and Oil
7301 Repairs and Servicing
7302 Licences
7303 Vehicle Insurance
7304 Miscellaneous Motor Expenses
7350 Scale Charges
7400 Travelling
7401 Car Hire
7402 Hotels
7403 U.K. Entertainment
7404 Overseas Entertainment
7405 Overseas Travelling
7406 Subsistence
7500 Printing
7501 Postage and Carriage
7502 Broardband & Telephone
7503 Mobile Phones
7504 Office Stationery
7505 Books etc.
7506 Hosting & Domains
7600 Legal Fees
7601 Audit and Accountancy Fees
7602 Consultancy Fees
7603 Professional Fees
7700 Equipment Hire
7701 Office Machine Maintenance
7800 Repairs and Renewals
7801 Cleaning
7802 Laundry
7803 Premises Expenses
7900 Bank Interest Paid
7901 Bank Charges
7902 Currency Charges
7903 Loan Interest Paid
7904 H.P. Interest
7905 Credit Charges
7906 Exchange Rate Variance
8000 Depreciation
8001 Plant/Machinery Depreciation
8002 Furniture/Fitting Depreciation
8003 Vehicle Depreciation
8004 Office Equipment Depreciation
8100 Bad Debt Write Off
8102 Bad Debt Provision
8200 Donations
8201 Subscriptions
8202 Clothing Costs
8203 Training Costs
8204 Insurance
8205 Refreshments
8206 AWS Amazon Backup Services
9998 Suspense Account
9999 Mispostings Account
Replies (18)
Comments for this post are now closed.
Hi Nick,
So the company can’t afford to pay you wages, but can afford to pay your invoices?
There’s (potentially) a straightforward solution to this, can I suggest that you get an accountant? Especially as your accounts are 2.5 months overdue, you need to act fast as the fines jump when you hit 3 months.
You will need to explain how the company can afford to pay a consultant but cannot afford to pay an employee. That rather sounds like the company is trying to evade payment of taxes and NIC. If the issue of payment is cash-flow and paying PAYE and NIC then surely the owner(s) should be subsidising the company to pay the wages and taxes in the same way as it would be subsidising to pay the consultant.
The water seeping over the top of your wellingtons should tell you that you have waded in too deep.
Dear Nick
What you have posted is drivel and a dangerous example of DIY accounting. Sorry.
Love and kisses
Jaysus !!
You're a subcontractor and you've gone for Sage ??
That was an early error.
I'd say your first but there are probably more.
This is outside your skill set. Get an accountant or cease trading.
Hi
ok this is the situation.
The company didn't trade in the first year it was just being put in to place so had costs but i didnt draw anything.
It has only recently taken on customers now its in its second year and my question relates to now that it can pay something.
the custom I have at the moment is barely enough to cover the costs a pay a little toward the huge amount of my time its taking as im doing the work myself to get things started.
I am aware my accounts are late it has been due to a hard drive failure that has meant ive had to rebuild the data on everything.
I want to keep my own accounts and use sage so as to do much of the work and then have an accountant for the final expertise to save costs at the moment.
I am self employed but as a separate thing trying to build up this limited company so as to at some point pay myself a PAYA wage but custom is too up and down at the moment to allow that.
I still think you need an accountant now.
1. You don't have to pay yourself the same wage every week/month/quarter/blue moon. It can vary. So your excuse for not paying yourself under PAYE doesn't hold water.
2. You can't be a director and send invoices for your work.
3. Sage won't do the work and if you don't keep the records correctly, your accountant will charge you more for his time in sorting out the carp you give him.
The OP has been on another site with this. I suggested he get an Accountant but was called an A hole for my trouble.
Thread closed, I think.
haha yes i've been a busy bee and you pal need to get a life feel like i'm being stalked by you and that does make you an a hole lol... seriously go bother someone else :P why so many haters out there!
1. This forum is mainly for accountants asking other accountants technical questions. As you can see, you get short shrift as a non-accountant looking for free advice. Of course, this isn't your fault but it explains the replies you've got so far.
2. You NEED an accountant. Get a high street chappie, few hundred quid and hopefully sorted (though probably after the end of July). Be aware you are going to be late for your accounts and tax returns already however so be prepared for some fines coming your way.
Another satisfied customer ©
Just stick everything into 9999 to save time later.
Good idea.
Like it.
I don't see anything that remotely resembles hate being served to you, merely advice that you really should take.
You are already at a higher risk for being selected for enquiry by HMRC and you probably don't even know that you are. (Late accounts as a couple of points to your risk score with HMRC as they associate late accounts / tax returns with people / companies who don't take their accounting / taxation responsibilities seriously, therefore rendering them more likely to be doing something wrong.
Sage 50 for a company that is / has been doing little to nothing is another error.
Save yourself some cash and scrap sage in favour of cloud software (even the free offerings like Quickfile are better than Sage). As a bonus, you won't need to worry about corrupt hard drives as the data will be sitting on a cloud :-)
“I don't see anything that remotely resembles hate being served to you, merely advice that you really should take.”
Not like that’s ever been said to a layperson OP before.
Payments to a Director should be booked to the Director loan account (2301) and reduced by salary or dividends etc when declared. So set up a payroll scheme and cancel the self-employment (unless you need it for other work but why are you running both?).
Also please note that Directors without an employment contract are not subject to the minimum wage.
Didn’t you read the OP, the company can’t afford to pay a salary ... ;)
This thread has been closed. Thanks.