How to enter Directors' salary on sage if they are self employed? - The Book-keepers Forum (UK)

Ginta · Veteran Member

How to enter Directors' salary on sage if they are self employed?

Figurate · Senior Member

If they really are self-employed and not employees of the company, then they would/should not be receiving a salary from the company biggrin

(a journal/bank payment is ok, btw - but don't use the "directors salaries" code, if they really are self-employed)

Ginta · Veteran Member

Thank you. I will use a different nominal code for freelance salaries.

suerenaut · Newbie

The Self-employed take 'Drawings' not salaries, and they should be posted to The Balance Sheet - I would suggest nominal code 2301 or similar. Post a Bank Payment to 2301, vat code 9.

Sue (Sparos Accounting)

Brewsie · Veteran Member

The OP indicated that these were directors of a Ltd Co, so 'Drawings' are not the answer here.

I assume that the directors are invoicing the co for their services, so should be handled just like any other supplier. If you already have a nominal for 'freelance directors' services', that would be a good place to post them.

Ginta · Veteran Member

Thank you for the replies.

Yes I have created a nominal code 7012 for freelance fees (not only directors but all freelancing fees in general) with VAT code T9, as i though it would be the best option. I suppose it is more overheads rather than drawings. Please correct me if I am not right ...

Many thanks

Ginta

-- Edited by Ginta on Monday 3rd of October 2011 11:02:06 PM

Figurate · Senior Member

If the directors are genuinely working on a self-employed basis, then code their invoices to the company to your new 7012 freelance code. They are not drawings, as Ian/Brewsie has already said, because its a limited company biggrin

(The directors may take drawings from their own self-employed earnings, but these should go through the (entirely separate) accounts for their sole-trade/self-employment and have nothing to do with the company accounts)

-- Edited by Figurate on Tuesday 4th of October 2011 08:42:26 AM

Ginta · Veteran Member

Thank you once again.

I feel a bit more confident now. So glad that there are some people out there who are willing to share their experience and wisdom!

Thank you!

Ginta

HendyPhilhendy · Guru

Don't forget this will require related party disclosure on the final accounts. Also has this set up been correctly tax planned? The directors, assuming they are shareholders also may be better off taking salary and dividends.

eventgroup · Member

Hi everyone, this post interested me as i'm in the same position the LTD company is a new start up and so cant pay a regular paye wage to me at the moment... I presumed that I should post self employed invoices for my labour to code 6002 sub contractors is that incorrect? Im using sage line 50 V12. Really appreciate any guidance im struggling to get my head around it all, many thanks.

My COA...

0010 Freehold Property

0011 Leasehold Property

0020 Plant and Machinery

0021 Plant/Machinery Depreciation

0030 Office Equipment

0031 Office Equipment Depreciation

0040 Furniture and Fixtures

0041 Furniture/Fixture Depreciation

0050 Motor Vehicles

0051 Motor Vehicles Depreciation

1001 Stock

1002 Work in Progress

1003 Finished Goods

1100 Debtors Control Account

1101 Sundry Debtors

1102 Other Debtors

1103 Prepayments

1200 Lloyds Bank Current Account

1210 Bank Deposit Account

1220 Building Society Account

1230 Petty Cash

1240 Company Credit Card

1250 Credit Card Receipts

2100 Creditors Control Account

2101 Sundry Creditors

2102 Other Creditors

2109 Accruals

2200 Sales Tax Control Account

2201 Purchase Tax Control Account

2202 VAT Liability

2210 P.A.Y.E.

2211 National Insurance

2220 Net Wages

2230 Pension Fund

2300 Loans

2301 Director Loan

2310 Hire Purchase

2320 Corporation Tax

2330 Mortgages

3000 Ordinary Shares

3010 Preference Shares

3100 Reserves

3101 Undistributed Reserves

3200 Profit and Loss Account

4000 Sales Web Design

4001 Sales Hosting

4002 Sales Seo & Remote Support

4009 Discounts Allowed

4100 Sales Hardware Repairs

4101 Sales Hardware & Software

4200 Sales of Assets

4400 Credit Charges (Late Payments)

4900 Miscellaneous Income

4901 Royalties Received

4902 Commissions Received

4903 Insurance Claims

4904 Rent Income

4905 Distribution and Carriage

5000 Materials Purchased

5001 Materials Imported

5002 Miscellaneous Purchases

5003 Packaging

5009 Discounts Taken

5100 Carriage

5101 Import Duty

5102 Transport Insurance

5200 Opening Stock

5201 Closing Stock

6000 Productive Labour

6001 Cost of Sales Labour

6002 Sub-Contractors

6003 Scripts & Coding

6100 Sales Commissions

6200 Sales Promotions

6201 Advertising

6202 Gifts and Samples

6203 P.R. (Literature & Brochures)

6900 Miscellaneous Expenses

7000 Gross Wages

7001 Directors Salaries

7002 Directors Remuneration

7003 Staff Salaries

7004 Wages - Regular

7005 Wages - Casual

7006 Employers N.I.

7007 Employers Pensions

7008 Recruitment Expenses

7009 Adjustments

7010 SSP Reclaimed

7011 SMP Reclaimed

7100 Rent

7102 Water Rates

7103 General Rates

7104 Premises Insurance

7200 Electricity

7201 Gas

7202 Oil

7203 Other Heating Costs

7300 Fuel and Oil

7301 Repairs and Servicing

7302 Licences

7303 Vehicle Insurance

7304 Miscellaneous Motor Expenses

7350 Scale Charges

7400 Travelling

7401 Car Hire

7402 Hotels

7403 U.K. Entertainment

7404 Overseas Entertainment

7405 Overseas Travelling

7406 Subsistence

7500 Printing

7501 Postage and Carriage

7502 Broardband & Telephone

7503 Mobile Phones

7504 Office Stationery

7505 Books etc.

7506 Hosting & Domains

7600 Legal Fees

7601 Audit and Accountancy Fees

7602 Consultancy Fees

7603 Professional Fees

7700 Equipment Hire

7701 Office Machine Maintenance

7800 Repairs and Renewals

7801 Cleaning

7802 Laundry

7803 Premises Expenses

7900 Bank Interest Paid

7901 Bank Charges

7902 Currency Charges

7903 Loan Interest Paid

7904 H.P. Interest

7905 Credit Charges

7906 Exchange Rate Variance

8000 Depreciation

8001 Plant/Machinery Depreciation

8002 Furniture/Fitting Depreciation

8003 Vehicle Depreciation

8004 Office Equipment Depreciation

8100 Bad Debt Write Off

8102 Bad Debt Provision

8200 Donations

8201 Subscriptions

8202 Clothing Costs

8203 Training Costs

8204 Insurance

8205 Refreshments

8206 AWS Amazon Backup Services

9998 Suspense Account

9999 Mispostings Account

-- Edited by eventgroup on Wednesday 18th of July 2018 04:35:28 PM

Cheshire · Master Book-keeper

Youu do not have self employed labour with a limited company!!!!!!

You need an Accountant (and very quickly)

Cheshire · Master Book-keeper

Poor form to edit after a respondent has posted.plus I have no idea why you have posted a chart of accounts!

This is a forum for bookkeeping professionals, not business owners

-- Edited by Cheshire on Wednesday 18th of July 2018 04:40:32 PM

eventgroup · Member

Thanks for your reply..... so how do I go about claiming something for my time as I spend a considerable amount working unpaid for the company to get it off the ground, I should have explained but im self employed and submit my self employed accounts as per usual but because the LTD company i've started doesn't make enough to pay me a wage i've been invoicing the LTD company (to which im sole director) invoicing from my self employed business i mean and to the company. Is that a problem and if so how what should I be doing... Thanks again for your help...

Cheshire · Master Book-keeper

eventgroup wrote:
Thanks for your reply..... so how do I go about claiming something for my time as I spend a considerable amount working unpaid for the company to get it off the ground, I should have explained but im self employed and submit my self employed accounts as per usual but because the LTD company i've started doesn't make enough to pay me a wage i've been invoicing the LTD company (to which im sole director) invoicing from my self employed business i mean and to the company. Is that a problem and if so how what should I be doing... Thanks again for your help...

like I said - get an Accountant! Thats what you should be doing.

eventgroup · Member

If I cant afford to pay myself a wage what makes you think I have funds for an accountant! If you have nothing constructive to say go bother someone else ive been polite and your just an A hole so go hasle someone else, i have a simple question the answers not brain surgery so I don't see the need to rush off for an accountant just yet im happy to learn it myself and there's a wealth of knowledge available online so thanks for your advice but its useless at best.

Cheshire · Master Book-keeper

eventgroup wrote:
If I cant afford to pay myself a wage what makes you think I have funds for an accountant! If you have nothing constructive to say go bother someone else ive been polite and your just an A hole so go hasle someone else, i have a simple question the answers not brain surgery so I don't see the need to rush off for an accountant just yet im happy to learn it myself and there's a wealth of knowledge available online so thanks for your advice but its useless at best.

So you really think you are going to get help from anyone on here by being so rude?

This is a forum for professionals NOT freeloaders.

Dont believe all you read online - HMRC love fining folk for doing so!!!!!

What you are doing is wrong -simple answer!!!!!

eventgroup · Member

i haven't been rude only perhaps to you and that was because you were rude to me... get over yourself it was a simple question and the answer will be a simple one too you can try and mistify it if you want but just makes you look stupid & bit childish don't you think... and why you not gone to bother someone else your helps not needed here..... There's a simple answer to how it should be handled i'll just wait for some brains to arrive make sure you move out the way and let them through would you!

Casu · Senior Member

eventgroup wrote:
If I cant afford to pay myself a wage what makes you think I have funds for an accountant! If you have nothing constructive to say go bother someone else ive been polite and your just an A hole so go hasle someone else, i have a simple question the answers not brain surgery so I don't see the need to rush off for an accountant just yet im happy to learn it myself and there's a wealth of knowledge available online so thanks for your advice but its useless at best.

what-that isnt rude?!!

Casu · Senior Member

eventgroup wrote:
i haven't been rude only perhaps to you and that was because you were rude to me... get over yourself it was a simple question and the answer will be a simple one too you can try and mistify it if you want but just makes you look stupid & bit childish don't you think... and why you not gone to bother someone else your helps not needed here..... There's a simple answer to how it should be handled i'll just wait for some brains to arrive make sure you move out the way and let them through would you!

what - thats not rude?!!!!!

eventgroup · Member

perhaps but i didn't start the rudeness off i merely give as good as i get and then some. if someone has nothing constructive to say then say nothing at all!

Casu · Senior Member

eventgroup wrote:
perhaps but i didn't start the rudeness off i merely give as good as i get and then some. if someone has nothing constructive to say then say nothing at all!

where was the rudeness?

Artois · Guru

You came on here looking for help and was given it which was to get an accountant, maybe you should have got one before setting up the Company.

Also you should have a read back through your posts and see for yourself who comes across as stupid and a bit childish.

Cheshire · Master Book-keeper

There appears to be a whole bunch of A holes on Aweb as well.

www.accountingweb.co.uk/any-answers/director-invoicing-ltd-company-for-costs#

This one cannot afford to not get an Accountant.

Artois · Guru

Cheshire wrote:
There appears to be a whole bunch of A holes on Aweb as well.

www.accountingweb.co.uk/any-answers/director-invoicing-ltd-company-for-costs#

This one cannot afford to not get an Accountant.

Priceless

eventgroup · Member

:D jesus your a flipping stalker haha get a life!! I have the info i need now anyway just had to post it about in a few places... You need to get over yourselves your book keepers the lowest step on the financial service ladder :D get over yourself its really not as hard as you'd like others to think! If you were here now id bitch slap you back in to your box just for being muppets ... idiot! lololol

Shamus · Forum Moderator & Expert

Afternoon Joanne, Doug, Casu

fear not, cavalry's here (at last). Sorry folks have a £2 billion turnover company that I need to look after that services multi trillion turnover entities that people like Joanne used to work for before she decided to use her talents to help a selected number of smaller businesses who show her the respect that she deserves... Oh but wait, we're the lowest of the low and couldn't possibly be making decisions at that sort of level....

Also really glad to know that what we do is really easy and our services can be replaced by a simple internet search. God only knows what I was doing with my head buried in all those huge books for so many years. All obviously just a waste of my time when I could have asked some random person on a site for business owners and they would have given me the exact answers that I needed.... Silly me.

Unfortunately Nick won't be joining in the conversation going forwards...

Leger · Master Book-keeper

deleted.

-- Edited by Leger on Wednesday 18th of July 2018 11:41:15 PM

haymac · Veteran Member

Well I never !!! Such total disrespect and downright rudeness. Eventgroup, what makes you think you have the correct answer to your query..... Only time will tell when you submit your year end. Shaun, superb answer :)

Amanda · Expert

Well I missed this one!!!! REad it just a minute ago on accounting web, I actually thought they were quite polite! The thing that no one said was the fact that sage 50 V12 is so old, it should be in the bin by now!

Anyway he will pay the price later on when he submits his accounts, the fines will be hefty and the accountants bill will be even bigger!

Bloody cheek saying the bookkeepers are at the bottom of the pile in the financial sector! I for one count myself to be just a bit more than a mere 'bookkeeper' he probably thinks we just input a few numbers all day and press a few buttons! If only he knew what we all really did...... well getting clients like him out of the crap for one!

Wish I had joined in earlier!