I have a pile of recipts from my MD relating to his expenses some of which include personal expenses for holidays, meals and such. Should these be put through on his DLA or are they okay to go through the travelling, subsistence nominal codes as long as the VAT is not claimed?
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Personal expenses are personal expenses! Put to the directors loan.
There might be a business case for some of the travel and subsistence if it is genuinely for business, the MD should be able to tell you this.
Bury it in the biggest figure (usually purchases).
Nobody will ever find it there...………..
Bury it in the biggest figure (usually purchases).
Nobody will ever find it there...………..
Agreed. Just to be on the safe side, make sure that you describe them as business expenses otherwise HMRC might spot them.
Even better, use "genuine business expenses" followed by a winking face emoji as the narrative. HMRC will be fooled and the accountant will know not to question them.
Mr_awol wrote:
Bury it in the biggest figure (usually purchases).
Usually sales for most of my clients.
Biggest expense heading.
You cant fiddle [***] like this through sales - at least not for VAT registered businesses. Sticks out like a sore thumb on the VAT to turnover rec.
What if you're on cash accounting ?
I think cash accounting is something of an oxymoron.
I've just asked three of my clients that very question. They all said you don't have to account for cash jobs.
I guess I shouldn't mention a client last week saying he didn't need to tell me about cash he receives as he puts it all in to ISAs and ISAs are tax free... I felt like smacking my head against the wall
Unless your MD has had an "oops" with his business card, and has asked you to sort out which are business and which are not, then its not OK for him to try and hide private costs in the business.
This tends to be the actions of a bully / sociopath. Its not OK to put you in a position to either cover up his antics, or stand up to him.
If the MD does not own the whole business, be very careful you are not seen to be aiding an abetting what could be fraud.