The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> Book-keeping Software -> Tax rebate paid into Business account (VT Transactions)
Post Info TOPIC: Tax rebate paid into Business account (VT Transactions)
Jay


Senior Member

Status: Offline
Posts: 262
Date:
Tax rebate paid into Business account (VT Transactions)
Permalink Closed

Good afternoon all.

Within a partnership the two partners had a refund from HMRC.

This was paid directly into the Partnership bank account.

Treated as  income it will increase the turnover (and tax etc)

Still new to VT Transactions , and have now confused myself (more than normal)

Can anyone point me in the right direction please?

 

Thank you

Jay

 

 

 



__________________
Shamus


Forum Moderator & Expert

Status: Offline
Posts: 11981
Date:
Permalink Closed

A tax rebate is not income. If you did that then it would incorrectly increase the tax liability.

Surely the rebate to the partners being their money not the businesses if deposited in the business would be recorded in direct proportion to their partnership agreement to their respective capital accounts?

so...

Dr Bank
Cr P1 - Capital Introduced
Cr P2 - Capital Introduced

I don't have any partnerships (I don't beleieve that they work unless the partners are married) so happy to be told that I'm wrong (if I am).

kind regards,

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.
Jay


Senior Member

Status: Offline
Posts: 262
Date:
Permalink Closed

Hi Shaun. Spot on as always.

The rebates are in accordance with the partnership agreement.

I knew what to do, but could not see how to do it in VT

The problem was that I did not scroll down enough on the Analysis Ledger to see "Capital Account".

Its the last one and the only one that requires the scroll down.

 

I agree with the partnership issue, over the years I have seen many partnerships fail.

 

Mind you mine, is still going strong, 39 years. 

I have no idea how she puts up with me?

 

Jay

 



__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> Book-keeping Software -> Tax rebate paid into Business account (VT Transactions)
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About