I have a client who went limited on 1st August, however they have received income in their business account for services carried out before going limited. How would these be accounted for in the new limited accounts?
Many thanks in advance
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Who contracted to provide the services? Looks like self-employed income absent more details.
The services were from when the client was self employed. I believe the income received into the ltd bank account for these services can be treated as director loans and can be repaid to the client's personal bank account. The tax implications will be for the self employed self assessment.
So the client has effectively lent self-employment earnings to his newly formed company and now wants to withdraw those earnings? Perfectly permissible, I agree with you.
Obviously ensure supporting evidence is retained.
So what you mean is that the money went to the company account?
Surely he had a business account as a self employed trader
Find it unlikely any money went in to the companies bank account before incorporation for the simple fact you can't have a business account in the company name without an incorporation certificate.
I agree that what actually happened in unclear. A company receiving money before incorporation is implausible.
Not the same issue.
The OP seems to suggest the company had a bank account prior to inception.
Not possible. (Ok possible for corporate deals ahead of completion, but not accessible until the point of said completion).
Unfortunately the OP, as per, has wandered off.
I take it your client invoiced in the name of the limited company and provided the limited company bank details. However if it is self employment income then treat it as such and book to DLA.