A Ltd company client has received payments from a recruitment agency into the business bank account along with remittance advices to support these payments which make reference to timesheets and show deduction of PAYE/NI. However the director has also received a P60 from the recruitment agency reflecting these payments and the PAYE deducted. The Ltd company has incurred various expenses relating to this work paid out of the business bank account.
Am very confused as to why a P60 has been issued to the individual but actual payments and remittance advices addressed to the ltd company and so am uncertain how this income (and associated expenses) should be treated in the ltd company accounts ?
Surely the P60 income has to go on personal Self Assessment tax return, but are the payments into the business bank account then credited to directors' loan account ? and what about the related expenses as if this income is not reflected in the accounts what is the expenditure matched with ?
First time I have come across this scenario so guidance would be greatly appreciated.