Hello to all, I'm hoping one of you lovely people can offer assistance with a query I have :)
I've just started doing the books for a small limited company. The first bach of receipts and invoices I have been given include petrol receipts which include small items, one example being £53.01 which includes £50.02 on petrol £1 newspaper and £1.99 lucozade sport.
I intend to tell the director of the business that he shouldn't be doing this but in the meantime, should I separate off the small sundry items into a directors loan account? I'm assuming that this is not the first time he has put a receipt like this through the business, however, I can't find any trace of the person who did the books before separating his personal purchases off in anyway. I'm using Sage for this particular company and there doesn't seem to be a directors loan account set up (assuming I should create one and use code 3060?).
Any advice would be greatly appreciated, the only other people I have undertaken bookkeeping for have been sole traders and one limited company where the directors are absolutely great at following the rules about what they can and can't use the business accounts for.
yes, sundry personal expenditure such as mentioned in the question are nothing to do with the business and should be seperated out into a DLA.
there are some different rules associated with long distance lorry drivers and meals whilst travelling but this is just personal expenditure.
For full reference see here :
http://www.hmrc.gov.uk/helpsheets/490.pdf
kind regards,
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.
Thank you for the fast response and I'm glad to hear I'm on the right track. I'm going to take a look back through the old receipts too. I'm wondering whether the previous book-keeper was putting the whole amount through as an expense because the amounts are (well the ones I've come across so far) relatively small so in her opinion, not worth the hassle?
I have a feeling I will be posting quite a few questions regarding this particular job, I seem to be coming up with things daily where I just can't see where the previous lady had got up to and what process she was following. I'm starting to regret agreeing to take over!
