Reply to: Accountancy co has charged my company for incentive vouchers for joining them

[craigy1874]

What an utterly complicated solution for an introductory offer!

[ladymuck]

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.

[Scruff]

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.

[northernladuk]

All a bit cloak and mirrors for my liking.

Don't you mean smoke and dagger?

[Waldorf]

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.

[simondolan]

Probably bulk discount for amazon vouchers?

Possibly. Just seems such a complicated approach to a very simple offer

[MrButton]

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?

[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.

[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?

[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.

[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]

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.

[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.

[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.

[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.