Hi Kate
Welcome to the forum. We always ask newbies to provide a little intro about themselves and their bookkeeping background/knowledge/exams taken, if any/institute, blur blur - helps in answering the questions.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position