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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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.
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.
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.
Does anybody remember back in the bad old days when we used to have to speak to people on a thing called a telephone ?
I remember those days. Now when the house phone rings the whole family just stares at it wondering what's going on.