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Previously on "Accountancy co has charged my company for incentive vouchers for joining them"

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  • craigy1874
    replied
    What an utterly complicated solution for an introductory offer!

    Leave a comment:


  • ladymuck
    replied
    If the vouchers were a refund to the company, why do they become a liability to the director? I'd put the value in prepayments and then journal out as and when spent.

    Of course, if the point of the refund via Amazon vouchers rather than a payment to the company was a means of encouraging the director to take a refund to their company as a personal benefit, then putting it in DLA is appropriate. I'd also consider finding a new accountant who isn't trying to entrap me.

    Leave a comment:


  • Scruff
    replied
    It appears that the vouchers were given to the Company, in lieu of discounted fees. You have elected to spend them on Personal items?

    Your accountant is engaged by YourCo for work that they do on its behalf.

    Leave a comment:


  • northernladuk
    replied
    Originally posted by Waldorf View Post

    All a bit cloak and mirrors for my liking.
    Don't you mean smoke and dagger?

    Leave a comment:


  • Waldorf
    replied
    Wow, I’m surprised that In Touch would do something so unclear as this.

    If they make such an easy offer so complicated I dread to think what they’d do with other stuff.

    All a bit cloak and mirrors for my liking.

    Leave a comment:


  • simondolan
    replied
    Originally posted by sketchandsunshine View Post
    Probably bulk discount for amazon vouchers?
    Possibly. Just seems such a complicated approach to a very simple offer

    Leave a comment:


  • MrButton
    replied
    Originally posted by simondolan View Post
    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?
    Probably bulk discount for amazon vouchers?

    Leave a comment:


  • MrButton
    replied
    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.

    Leave a comment:


  • simondolan
    replied
    Originally posted by Neil@Intouch View Post
    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?

    Leave a comment:


  • Satp
    replied
    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.

    Leave a comment:


  • oilboil
    replied
    Originally posted by Satp View Post
    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

    Leave a comment:


  • Satp
    replied
    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.

    Leave a comment:


  • Satp
    replied
    Originally posted by TheFaQQer View Post
    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.

    Leave a comment:


  • Neil@Intouch
    replied
    Originally posted by TheFaQQer View Post
    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.

    Leave a comment:


  • Neil@Intouch
    replied
    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.

    Leave a comment:

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