Accountancy co has charged my company for incentive vouchers for joining them

[Satp]

I engaged a new accountant last year and after I had signed up was sent £210 of Amazon Vouchers. I didn’t know anything about the vouchers before I signed up, I was told about them in the post sign up email via a line which said “Your first month invoice will be set against 01/09/17, and we will provide you with £210 of amazon vouchers.

When I got my year end accounts, I found that there was £210 showing as a Directors Loan as the accountant had raised a charge of £210 to my company. When I questioned this they said that the £210 was 2 months fee (I have been charged every month since I joined?) and that I should put in an expense for £220 against computer consumables.

I have asked them to take it out as I have not, and will not, spend that much this year on computer consumable so would not have receipts if I got audited. They are refusing and have said instead that I should pay the £210 into my company. Any advice would be appreciated.

[TheFaQQer]

What did you do with the £210 vouchers?

I'm not sure why it would appear in your company accounts at all - it should just go on your self assessment as other untaxed income.

[Neil@Intouch]

As discussed, this was an incentive in replacement for free months, a signup offer for the month in which you joined.

Therefore this would need to be put into the accounts as a deduction to the Accountancy fees, with the other side of the journal being entered into the director's loan.

This would be resolved by putting through the expenses for what you have spent these vouchers on, to net off the tax impact.

[Neil@Intouch]

What did you do with the £210 vouchers?

I'm not sure why it would appear in your company accounts at all - it should just go on your self assessment as other untaxed income.

This was the alternative option, but it was in replacement for free months.

[Satp]

What did you do with the £210 vouchers?

I'm not sure why it would appear in your company accounts at all - it should just go on your self assessment as other untaxed income.

£110 are still sitting in my Amazon account, the remainder were used to buy things various things.

[Satp]

It wasn't mentioned that it was a replacement for free months or that it would be charged to the company until I questioned it, which was after I got my year end accounts.

[oilboil]

It wasn't mentioned that it was a replacement for free months or that it would be charged to the company until I questioned it, which was after I got my year end accounts.

Maybe you should have checked?

The accountant is sort of correct here, but you are both in the wrong for not having a proper discussion about it in advance. The amount must have been sitting on the accounts for ages now - why only "notice" it at year end

[Satp]

Hi, it wasn't posted before I closed the year end accounts on the system. I first saw it when I got my y/e accounts through. I don't know exactly when it was posted, as I can only see it as a brought forward figure on the Directors Loan account, but I check the balance when I reconcile my accounts every month, I last agreed accounts for November month end so it wasn't in there when I did this in December.

[simondolan]

As discussed, this was an incentive in replacement for free months, a signup offer for the month in which you joined.

Therefore this would need to be put into the accounts as a deduction to the Accountancy fees, with the other side of the journal being entered into the director's loan.

This would be resolved by putting through the expenses for what you have spent these vouchers on, to net off the tax impact.

So rather than simply giving free months, the client paid, but you reimbursed him in the form of vouchers? Why not simply start the DD two months late?

[MrButton]

What did you expect to happen?

Did you expect YourCO to pay the accountancy fee and you personally get that money back as an amazon voucher and not be accounted for or pay tax on it?

Agree they should have discussed this with you upfront but I think your way overthinking it.