Share this content

Entry in financial accounts - "No Description"

Clarification of entry in financial accounts

Didn't find your answer?

Morning all,

I have just been passed a set of accounts for a limited company with a turnover of  £800k and a net profit of £30k. I am not their accountant yet but will be shortly.

My concern is that the accounts have been produced for YE 30.04.2018 and sent off to HMRC, and Co House and there is an entry in the expenses which is listed as "No Description" £4000

My concern is, will this raise an eyebrow at HMRC, and if so should I warn the director?- she is a client for personal taxation.

Replies (3)

Please login or register to join the discussion.

By lionofludesch
12th Dec 2018 15:16

Worth pointing it out but the chance of an eye looking at it is slim, given the state of HMRC today.

You need to know what it is because it'll be part of the comparatives in the 2019 accounts for which, one would assume, you'll be responsible.

Thanks (1)
By frankfx
12th Dec 2018 15:27

Well the cat's out of the bag.

Seek clarification now. whilst memories and records are fresh.
And the former accountant can pick up any time costs . any later , you pick up the hassle that may arise.

Also you can bill for the work.

What are chances of HMRC picking this up ?

This could be the residual amounts of £000s of no description transactions.

But the tax consequences are real, as you are on guard .

Former accountants will want the opportunity to explain the oversight . Their workmanship called into question, How did accounts see daylight?

Was it covered disengagement letter ?

£4,000 on a profit of £30,000 is meaningful .

Capital / DLA and so on .

Thanks (0)
Hallerud at Easter
12th Dec 2018 15:53

Probably the accountancy fee- one way of hiding it from the client.

Thanks (0)
Share this content

Related posts