Statements

[Diestl]

Hi,

I have transfered money from my business account to another account (to get better interest), however the acccountant is asking to see statments from that account also. As its a current morgage account it has some personal transactions on it and Im not going to be giving the accoutant copies. The money I transferred is still in the company so its not a loan or dividend, just moved. What happens if I dont provide them?

Regards

Diestl

[Pondlife]

Hi,

I have transfered money from my business account to another account (to get better interest), however the acccountant is asking to see statments from that account also. As its a current morgage account it has some personal transactions on it and Im not going to be giving the accoutant copies. The money I transferred is still in the company so its not a loan or dividend, just moved. What happens if I dont provide them?

Regards

Diestl

I beg to differ.

[Diestl]

I beg to differ.

Its my company where I put the money is my business, as long as I pay the tax whats the issue.

[Bunk]

I beg to differ.

WHS

Things to keep in mind:
Are you gaining anything from the money being in that account? Yes
Is your company losing anything from the money being in that account? Yes
Are your money and the company's money the same thing? No

[Spacecadet]

you will probably have to redeclare the money as a directors loan.. although this itself has some implications depending on how long the money has sat in that account

[Diestl]

WHS

Things to keep in mind:
Are you gaining anything from the money being in that account? Yes
Is your company losing anything from the money being in that account? Yes
Are your money and the company's money the same thing? No

As long as the money exists somewhere and the tax is paid I don't see an issue. So you are telling me business dont move money to other bannk accounts?

[Spacecadet]

As long as the money exists somewhere and the tax is paid I don't see an issue. So you are telling me business dont move money to other bannk accounts?

They do but those are other business bank accounts, not the MD's personal mortgage account

[Pondlife]

As long as the money exists somewhere and the tax is paid I don't see an issue. So you are telling me business dont move money to other bannk accounts?

It's fine to have multiple business accounts to take advantage of higher interest (MyCo does). It's not fine to take money out of YourCos accounts without ot going through the books. The money paid to you is either a loan, a dividend, salary or expenses.

It this case it's most likely a loan, which if less than £5K is fine as long as it's paid back by year end. Anything else is classed as a BIK to you personally and therefore tax is due. Your company is a separate legal entity to you and I would strive to keep that as distinct as possible.

[Bunk]

As long as the money exists somewhere and the tax is paid I don't see an issue. So you are telling me business dont move money to other bannk accounts?

You are gaining the personal benefit of paying less interest on your mortgage due to the company's money being in your personal account. How many businesses do you know would allow their employees to do that?

[Diestl]

It's fine to have multiple business accounts to take advantage of higher interest (MyCo does). It's not fine to take money out of YourCos accounts without ot going through the books. The money paid to you is either a loan, a dividend, salary or expenses.

It this case it's most likely a loan, which if less than £5K is fine as long as it's paid back by year end. Anything else is classed as a BIK to you personally and therefore tax is due. Your company is a separate legal entity to you and I would strive to keep that as distinct as possible.

It more than 5k not sure what to do now! I fI pay it all back is there any extra tax to pay?