Any ideas how to post expenses incured before the official financial year start.
It is a new Ltd Co that was incorporated on 26/06/09. HMRC have set the year end date at 30/06/10 effectively 12months and 1 week.
If you set the financial year start date in Sage to 01 July, it doesn't like entries pre dating that.
I had thought about entering opening balances in the appropriate accounts but not sure if HMRC would approve for CT purposes. (fortunately it isn't a vast amount, just the costs of incorporation and a couple of fuel expenses)
Yearend date is always 12 months from the end of the month of incorporation unless you change the year end date.
I always post these transactions at the 1st of the following month to get round Sage. Unfortunately sage can only worki in calendar months so theer is no alternative that I can see.
Put the costs through for the opening week as though they had happened then.
They're not really opening balances as they're fresh transactions.
Most times with mileage it's a couple of months later before I put my own through anyway.
Don't forget to get your client to keep a mileage log for business miles.
I think that Robs there or there abouts methodology is rubbing off on my purist mentality!
Hope that this helps,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
This working lark is really inconvenient, it's interrupting my forum time!!
Shaun, it gets a bit complicated with the fuel, as he is not reliable enough to log his mileage everyday, so for this and the other reasons, he is going to transfer ownership to the company (as previous posted). He did tell me it was only used for work but confessed that it does get used for private use too. I have explained that will incure a personal tax liability of a benefit (£3000 Van + £500 flat rate for fuel, if I understood HMRC website correctly). It still works better in his favour. Anyway that a problem for another day.
How are the Amigos? I see we have recruited an Amiga to the ranks
Now Peters home from school all the other parents think that it's fine to let their children come to his house to give them a rest with no consideration for the fact I'm trying to work!
So, figured I might as well log on here and check my fan mail whilst watching him through the window.
Glad I did as enjoyed Debbies VAT question.
Actually, on your point I think that minimal private use of a van (as opposed to a car) is allowable. If I get chance I'll check it later and post more details.
Talk in a bit,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I seem to recall the rules on personal use of van being if the usage is incidental then it's fine. I think they give an example of taking an old matress to the tip. It would save a few quid and would be perceived as excellent advice from you Bill. Just tell him always to have an old matress in the back in case one of her Majesty's inspectors pull him over!
