Without wanting to sound rude, I did say that there is "no P11D issues (anymore)".
By this I meant that the subscriptions is on HMRC's list 3 and it's connected to the trade of the company. So I presume it would be what HMRC call an "exemption". Hence no P11D issues and the company can just pay this back to me and claim it itself?
Thanks for your response.
If I earn a basic salary of £8,424 and dividends of £25,000, my marginal rate is 7.5%.
If I deduct my professional subscriptions of £500 it reduces my salary to £7,924 hence less of the £25k is taxed at 7.5%
On the other hand, if the my company reimburses me this sum then there's no P11D issues (anymore) and there's no requirement for me to deduct it on my personal tax return.
Instead now it has become the deduction of the company (it's an allowable sub on HMRC's list), hence the company saves tax at 19%.
If I am missing something obvious I would appreciate a kind response? Thank you in advance.
I think they are forgetting the b/f £800 DR.
Yes, sorry I meant to say £1000 (£200+£800).
My closing journals on Sage are using the sales code 4000 and accrued income 1104.
The previous accountants didn't use 4000 they put it to a suspense account 9998 Cr and the Dr 1104. I don't see them using the 4000 code anywhere but their sales figures are correct I'm not doubting their figures, just their logic in arriving at them.
My problem is I now do not have any money
No you certainly can't!
Speak to the solicitor I hope you have acting for you in the dispute. if you haven't got one perhaps that is why it looks like it is not going to be resolved.
My problem is I now do not have any money, so I just want to close the business and go and get a job elsewhere.
I owe a £5k, I know this may not seem like a lot of money, but when you don't have any it is.
I hear of builders (i'm not a builder) just closing down companies and walking away, so what do they do?
Its takeway meals
Portia Nina Levin wrote:Or... does the café do takeaway meals? If everybody is entitled to a meal on the employer's premises, you have an exempt benefit (as you would for the same in a canteen).
Yes, it is a takeaway and I'm pretty sure 99% of staff bring it back to the office and eat it at their desk or I have a separate room in the office where they normally go to eat.
If I'm OK claiming it for the company, is it a taxable benefit for them?
or as a work around see below....
Creating a contract with the limited company for use of the phone (similar to renting an office at home agreement) seems a good idea to work round the problem, however, would this not create a BIK charge?
The contract is in my name but has business use
Tim Vane wrote:
Who is the contract with? If it's a personal contract then what makes you think it has anything to do with the company?
OK thanks - The phone is in my name, but has 90% business use. So would I claim it on my tax return (as a business related expense on the employment pages) or would I deal with it in the company accounts as a Debit to "Mobile expense" and a Credit to "DLA" (with the actual business usage).
It seems that on attempting to think outside the box I fell right in it.
Thanks for you replies.
Thanks, I will carry forward a loss of £10.5k.
However in my actual accounts there will be a profit available for distribution of £7.5K (no profits brought forward for distribution). ie
Current tax 0 (due to AIA)
Deferred tax £4.5 (NBV £22,500 * 20%)
Profit available for distribution £7.5K
It just seems a little weird that via my tax comp I have a loss to carry forward (£10.5k) and yet my accounts are showing a profit of £7.5K
If in my tax comp I use all the AIA (£25k) this creates a negative figure of (£10.5) in my tax comp
Profit for year £12k
Add back dep'n £2.5k
Less AIA £25k
Is this a trading loss I can carry forward?