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Invoices issued between companies owned by same di

Invoices issued between companies owned by same director!!!

Hi, we have a a director who has incorporated two companies in UK, we will call them companies A and company B for clearer understanding. These companies offer different services. From company A he is taking salary and dividends and from company B just dividends. Ocassionally company A is invoicing company B  for subcontracting services. One invoice has recently been issued just one month before the company B's financial year ended and the invoice was paid by company B one month after the financial year ended. Obviously the accounts are prepared on accrual basis. How do you think HMRC will view such transaction in regards to corporation tax for company B, the invoice was for just above £10000. 

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30th Mar 2019 15:14

How do you think HMRC will view it? What exactly do you think the problem might be? Have you discussed this with your supervisor? That's probably more appropriate, if you are a trainee, than discussing your employer's clients on a public forum.

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30th Mar 2019 15:25

Does HMRC need to have a view? If the cost is not allowable, which is presumably what you are thinking, then it's your job (under supervision/review, as AA says) to add it back in the tax comp.

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30th Mar 2019 15:29

PS, I assume you meant "owned" not "owed" in your heading, otherwise the issues go beyond CT.

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30th Mar 2019 16:50

Who is supervising you Ramona?

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31st Mar 2019 21:28

I don't think HMRC will give a....... hoot.

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