Apologies for the question - Friday afternoon brain not functioning clearly.
I have 2 ltd co clients - each 100% owned by the same sole director. One company much older and bigger than the other and purchases all of small co's products for resale and incurs some of their costs (eg small co has no staff/payroll/office space). Proper VAT invoices are raised for the cost of sales and management fees. But there is also quite a bit of "intercompany" shenanigans with big co randomly paying invoices of small co (eg insurance, accounts fees).
At small co year end there is a combination of trade creditors and intercompany balance for amounts due to big co.
My question - is this really an intercompany balance (given their only connection is the common director/shareholder) and both balances at the year end should be added together and disclosed as "other creditors" or do I disclose as two amounts separately in "trade creditors" for the unpaid invoiced balances and "other creditors" for the rest?
Thanks in advance