There are several large payments going out each month to either sub contractors or employees with narratives such as 'Car allowance expenses' and Expenses. The expenses for the company have been put through a cash expenses account, and then any cash withdrawals have been put against this account, hopefully it will balance at the end of the year (not!).
The director is also paying himself a car allowance out of the bank account, and its not going through the payroll, as far as I was aware this is a taxable benefit even for director? So should it be shown seperately.
Anyway, now £1500 has been taken out as an interest free loan, I don't recognise the payees name, is this allowed?
Thanks sorry its so long, I hope someone can help!!
You should get them to have all expenses signed off and recorded properly as this will cause you a headache to reconcile, also if the director is getting a car allowance benefit that is a taxable benefit. The loan is fine as you can give out loans to staff if you want to up to about 5000 i think cant remember now but you just need to have a signed agreement in place for this with some sort of term for repayment which can be collected .
