Limited company account management problem

[Steven@Parasol]

Hi
You don't say when you started the company so it's not possible to give accurate advice without the facts. If you have been paying yourself expenses from the company then you will have needed to file a P11d (as you are not an emplyer and therefore do not hold a dispensation) back in July and make any payments (if due) by 19th July. HMRC issue a monthly penalty of £100 for each month that it is overdue. You need to be registered as an employer to do this.

I would check this with your accountant ASAP.

You should be advised on what salary to take from your ltd company according to income earned through PAYE in the current year through an ex employer. Again this needs clarifying what tax year you started in.

Agree with Sally as from your OP both accountants could claim to be technically correct.

Just to throw an extra spanner in the works, did either accountant mention IR35 to you?

[SallyPlanIT]

Hi everyone,I am in a big mess.I work through a limited liability company in which i am the sole shareholder.On opening the company I was told erroneously by the accountant that I do not need to run payroll,all I needed was to pay corporation tax at the end of the financial year.Now it is 3 months to the end of the my financial year and I have just been told by another accountant that I should have been running payroll and paying dividends.I have been transfering all payments from my business account to my personal account as soon as I get payments from my end clients and agency.it it possible to issue payslips and dividend vouchers retrospectively even if the dates and amount dont tally with what I am claiming as salary and dividends. Is there any law against this?is it possible to rectify this through the Directors loan account? please can someone assist with the legal implication of retrospectively issuing dividends vouchers and salary slips and ammending any inconsistency through the directors loan account.Thanks

Hi
You don't say when you started the company so it's not possible to give accurate advice without the facts. If you have been paying yourself expenses from the company then you will have needed to file a P11d (as you are not an emplyer and therefore do not hold a dispensation) back in July and make any payments (if due) by 19th July. HMRC issue a monthly penalty of £100 for each month that it is overdue. You need to be registered as an employer to do this.

I would check this with your accountant ASAP.

You should be advised on what salary to take from your ltd company according to income earned through PAYE in the current year through an ex employer. Again this needs clarifying what tax year you started in.

[Scrag Meister]

and make sure you have the corporation tax money put to one side!! Along with any personal tax that you may have to pay depending on your PAYE situation and the amount of divs you have claimed.

And if you are VAT registered then make sure that is all in order and allocated. Although I would have expected you to have been informed if this was not in order already, as you have run for 3 vat quarters already.

Gross Revenue , Total invoices inc VAT, bank interest received etc.......
Take out and keep VAT money, ready for the end of your VAT quarter.
= Net Revenue
Take out all expenses inc PAYE, Employer NI, postage, paper, printer ink, home office use, mileage etc. etc....
= Net Profit
Take out and allocate Corporation Tax
= Net payable profit
Pay divs as required and more personal tax on top of PAYE when needed once in your account.

I am pretty sure that HMRC won't be too interested assuming that everything is in order by year end.

GL

[Boo]

Your first accountant was correct. So long as you pay no salary you can behave as you have been.

Not in my opinion ! Imho, the OP needs to change accountants and the second one refered to sounds like he knows what he is talking about. I'd transfer the money back to the business account pronto and get the second accountant to try to sort out the mess.

Boo

[Scrag Meister]

I'd be inclined to retrospectively declare the money taken as dividends (which is what it was anyway), register for payroll and pay myself 7,000 pounds as salary before the end of the financial year (in a lump sum if necessary).

and make sure you have the corporation tax money put to one side!! Along with any personal tax that you may have to pay depending on your PAYE situation and the amount of divs you have claimed.

And if you are VAT registered then make sure that is all in order and allocated. Although I would have expected you to have been informed if this was not in order already, as you have run for 3 vat quarters already.

[Wanderer]

There is no problem with retrospectively doing anything (except payroll), as you are still well away from end of financial year.

I'd be inclined to retrospectively declare the money taken as dividends (which is what it was anyway), register for payroll and pay myself 7,000 pounds as salary before the end of the financial year (in a lump sum if necessary).

[escapeUK]

There is no problem with retrospectively doing anything (except payroll), as you are still well away from end of financial year.

Given he would be paying just below the NI threshold would it matter if he did it retrospectively?

[NotAllThere]

Your first accountant tells you one thing, a second tells you another. How do you know the second one is correct?

Your first accountant was correct. So long as you pay no salary you can behave as you have been. However, it's a really bad way to run things, as it easily leads to spending the corp tax you owe. Find yourself a proper accountant, and get them to sort it out.

There is no problem with retrospectively doing anything (except payroll), as you are still well away from end of financial year.

[benedicta]

Hi everyone,I am in a big mess.I work through a limited liability company in which i am the sole shareholder.On opening the company I was told erroneously by the accountant that I do not need to run payroll,all I needed was to pay corporation tax at the end of the financial year.Now it is 3 months to the end of the my financial year and I have just been told by another accountant that I should have been running payroll and paying dividends.I have been transfering all payments from my business account to my personal account as soon as I get payments from my end clients and agency.it it possible to issue payslips and dividend vouchers retrospectively even if the dates and amount dont tally with what I am claiming as salary and dividends. Is there any law against this?is it possible to rectify this through the Directors loan account? please can someone assist with the legal implication of retrospectively issuing dividends vouchers and salary slips and ammending any inconsistency through the directors loan account.Thanks