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IR35 salary accounting

help please!

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could do with a steer on on IR35 accounting

i'm fine with the tax comp, with the deemed salary coming off the profit

what the client has taken the salary as a tax free salary, rather than dividends, what I cant get my head around is the accounting for this in the actual statutory accounts

is it as simple as showing this as debit Directors salary, credit directors loans to balance up funds withdrawn

thanks in advance

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By KMPlant
27th Jan 2019 10:47

"acocunting" - sounds ominous.

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to KMPlant
27th Jan 2019 15:15

You answering questions is more so.

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27th Jan 2019 17:07

Presumably, this is a public sector case where the organistaion has deducted tax and NIC from the payment to the PSC?

If so:
DR Director's salary, with the gross fees invoiced
CR Sales ledger, with the deductions from the payment
CR Director's loan, with the balance.

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