Reply to: I need a legal document to show how much my limited company made (from accountant?)

[Wanderer]

I borrow money constantly, as my bills are very high..I'll just let my accountant handle the rest..I do have a company account...is there a problem?

If the loan is over £5,000 at any time during the year then there are tax implications unless you pay it back with interest. There is also a 25% tax charge if the loan is outstanding at 9 months after your year end. If your accountant is absolutely on top of this and you are absolutely sure of what the key dates are then you may be OK. Have a discussion about directors loans with your accountant and make sure you know what you are doing or you will get burned. And don't go spending all the company's money either, you must be able to pay it back when you need the money to pay the company's VAT or tax or you will get into serious trouble.

[malvolio]

no nothing that grand

@wanderer : I borrow money constantly, as my bills are very high..I'll just let my accountant handle the rest..I do have a company account...is there a problem?

Lots. potetnially. Do some googling on HMRC Record Keeping Checks, decalring and paying Dividends, claiming expenses....

This is not a game, you don't make it up as you go along and you have legal responsibilities. But hey, it keeps the authorities off our backs while they sort you out.

Unless you really want it all taxed as personal income plus the fines for not keeping proper records of course...

HTH. But I suspect it doesn't

[Jeystone]

Please don't tell me you need this for a mortgage application

no nothing that grand

@wanderer : I borrow money constantly, as my bills are very high..I'll just let my accountant handle the rest..I do have a company account...is there a problem?

[Wanderer]

Like the others said, a bank statement is probably the best way to do this. Perhaps with a copy of your current contract and explain to them that you are a freelancer.

I don't want bank statements..too many accounts, too messy...

Uh oh. How did you manage to get things to be that messy in just 6 months.

You're not using your personal bank account as a company one or "borrowing" the money straight out of the company account as soon as it comes in, are you?

[Support Monkey]

I need some kind of legal document which shows how much my company made before tax over a certain period, 6 months, a year etc

I need this to prove my income is over a certain threshold. Since my company offers services, after tax everything is profit (salary+dividends)..minimal overheads

what do you recommend?

Please don't tell me you need this for a mortgage application

[northernladuk]

haven't came upto my first year yet, so have no idea...

anyway, it's also not as simple as everyone else is making..If my one man limited company generates X amount, I'm not sure this will be sufficient proof that that is what I make, after tax..I believe me and the company are separate entities legally

As a director of a LTD company you are responsible for the running of that company including finances. Your accountant isn't even if they do your paperwork. I would suggest you start taking those responsiblities a little more seriously.

Most people who have little knowledge of their accounts use an accountant for both LTD and personal side. They should be in touch with both situations and can advise. If you don't have one I would strongly recommend a) You start praying, hard and b) get one quick.

They will have answered your quesiton with an 'OK it will be with you by the end of the day' so bypassing the chance to ridicule yourself on here.

[Clare@InTouch]

haven't came upto my first year yet, so have no idea...

anyway, it's also not as simple as everyone else is making..If my one man limited company generates X amount, I'm not sure this will be sufficient proof that that is what I make, after tax..I believe me and the company are separate entities legally

If your company generates £x amount, and the after tax profit is £x, and you're the only shareholder, that proves that (if you'd wanted to) you could have taken that full amount. Some companies often want to know that, as what you take isn't indicative of what you can afford to pay should you choose to. Other times they will want to know your salary plus dividends actually taken. Other times they will want both.

As NaT says, ask the company what they want to see.

[NotAllThere]

If you are running your own company, whoever wants to see proof of income normally wants to see the company accounts or bank statements. It's really is that simple. That's what happens when most of us go for a mortgage, for example.

What will complicate matters for you is that normally, it's three years worth of accounts.

However, if you want to choose to believe that it isn't so easy, that's entirely up to you. Why not ask the entity that's asking for proof what they would accept?

[Bunk]

haven't came upto my first year yet, so have no idea...

anyway, it's also not as simple as everyone else is making..If my one man limited company generates X amount, I'm not sure this will be sufficient proof that that is what I make, after tax..I believe me and the company are separate entities legally

Your personal tax return will (should) show how much you made after tax.

[Jeystone]

If only there were some kind of document that a company was required by law to generate every year, showing the financial position of said company.

??

haven't came upto my first year yet, so have no idea...

anyway, it's also not as simple as everyone else is making..If my one man limited company generates X amount, I'm not sure this will be sufficient proof that that is what I make, after tax..I believe me and the company are separate entities legally

[Clare@InTouch]

I need some kind of legal document which shows how much my company made before tax over a certain period, 6 months, a year etc

I need this to prove my income is over a certain threshold. Since my company offers services, after tax everything is profit (salary+dividends)..minimal overheads

what do you recommend?

As others have said, you can use your annual accounts. Or, ask your accountant to do a reference letter for you. Some will do this for free as part of their service.

[SueEllen]

If only there were some kind of document that a company was required by law to generate every year, showing the financial position of said company.

??

Naughty.

[Moscow Mule]

I don't want bank statements..too many accounts, too messy...

something else which consolidates everything

If only there were some kind of document that a company was required by law to generate every year, showing the financial position of said company.

??

[TestMangler]

Words fail me....

I Don't believe it NLUK !! Go on.....tell him........you know you want to !!

[Jeystone]

your company accounts or bank statements will suffice??????????

I don't want bank statements..too many accounts, too messy...

something else which consolidates everything