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Unpaid Director Salary in Year End Accounts

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Hi. I'm director of a small company, filing micro-entity. Basic salary c£7.8k p.a. but undrawn for the last 2 financial years. Expenses I've covered personally, use of home (£720) and mileage allowance also undrawn. I can report these in DLA but should I also include in accounts under Creditors, Staff Costs & Other Charges? Is this double counting? Keen to do the right thing in terms of Accounts & HMRC. Thanks

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By Accountant A
15th Jun 2020 20:26

i76

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By sgood0508
15th Apr 2020 22:16

Hi. Thanks for response. Company shown was pension fund I help manage. Removed to avoid confusion. Company I refer to is small & loss making for 2yrs. Agree with you 100% - I’m looking for a new accountant now. No longer use previous for various reasons, confusion around this issue being one. Was just hoping for interim guidance. Thanks.

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By spilly
15th Apr 2020 22:23

The best interim guidance is to make an appointment with a new accountant soon. We don’t know all your circumstances and are not really best-placed to comment further without detailed information.

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By sgood0508
15th Apr 2020 22:57

Hi. Thanks for responding. Current situation makes it difficult to speak with prospective accountants. I’d prefer to meet face to face, especially after my last experience. I was just hoping for generic guidance - can you include items in DLA and also P&L? I’m not trying to be an accountant. Thanks anyway for taking the time to respond.

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By SXGuy
16th Apr 2020 07:21

The expense incurred for which is business related goes on the p and l. The cost which was incurred by you goes in the DLA.

You could always have a Skype appointment with an accountant if you need a face to face meeting.

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By Matrix
16th Apr 2020 07:30

Yes the salary and any expenses owed to you should be booked to the P&L and the DLA. It is double entry. They should have been booked in the period to which they related and in which the payroll submission was filed.

All these entries including the tax charge should be booked into your bookkeeping system to create a trial balance before you even think of preparing micro entity accounts.

If you let us know roughly where you are located then maybe someone on here can help.

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By sgood0508
16th Apr 2020 09:46

Thank you both for your advice, that’s really helpful. I’ve signed up to Zoom so will contact a couple of local accountants for a chat. Thanks again.

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By kenny achampong
16th Apr 2020 13:50

Does anybody remember back in the bad old days when we used to have to speak to people on a thing called a telephone ?

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Replying to kenny achampong:
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By SXGuy
16th Apr 2020 19:22

I remember those days. Now when the house phone rings the whole family just stares at it wondering what's going on.

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