They don't have any creditors as they pay in full whenever they buy something.
But again the date on the invoice is usually a day or two before than the payment.
We are managing their bookkeeping and their accountant who is a chartered accountant has advised them to use bank feeds and post them instead of posting invoices/receipts.
From my point of view, it is cash basis even though they don't have any creditors because the payment takes 2-3 days to appear in bank and that could have an effect on balance sheet.
So if we are going to make adjustment at the year end which could take more time, is it not better to post invoices/receipts?
Any bookkeepers here who came across this issue. I have noticed lots of business is using this method to avoid bookkeeping.
In simple words, your clients needs to send EPS. If they have PAYE scheme setup or if they are running payroll then just report all the CIS deductions through payroll and send EPS.
Once received by HMRC you will have a credit balance on PAYE which can offset against Corp tax. You will have to write them to offset it.
It depends on whether he has any other income or not.
If he is receiving benefits then he needs to report his income even if it’s small.
Call HMRC self-assessment and tell them about his all income and they will be able to tell over the phone whether he is required to file a return or not.
He just raised funds for the main company who are making a product.
So let's say if he raised 100,000 he will keep his commission and give rest to main company.
Hi,
He started B2 without issuing p45 and just put the year to date total from b1 in B2 a day before the actual payroll started. Hmrc thought that it was a salary but it was year to date figures where were paid through b1.
My answers
They don't have any creditors as they pay in full whenever they buy something.
But again the date on the invoice is usually a day or two before than the payment.
We are managing their bookkeeping and their accountant who is a chartered accountant has advised them to use bank feeds and post them instead of posting invoices/receipts.
From my point of view, it is cash basis even though they don't have any creditors because the payment takes 2-3 days to appear in bank and that could have an effect on balance sheet.
So if we are going to make adjustment at the year end which could take more time, is it not better to post invoices/receipts?
Any bookkeepers here who came across this issue. I have noticed lots of business is using this method to avoid bookkeeping.
LTD
In simple words, your clients needs to send EPS. If they have PAYE scheme setup or if they are running payroll then just report all the CIS deductions through payroll and send EPS.
Once received by HMRC you will have a credit balance on PAYE which can offset against Corp tax. You will have to write them to offset it.
Hope that answers your queries
It depends on whether he has any other income or not.
If he is receiving benefits then he needs to report his income even if it’s small.
Call HMRC self-assessment and tell them about his all income and they will be able to tell over the phone whether he is required to file a return or not.
He just raised funds for the main company who are making a product.
So let's say if he raised 100,000 he will keep his commission and give rest to main company.
Hi,
He started B2 without issuing p45 and just put the year to date total from b1 in B2 a day before the actual payroll started. Hmrc thought that it was a salary but it was year to date figures where were paid through b1.