Hi, a client approached us to do his corporation tax. He is not actually trading since September and the report is due by the end of this month. After we went through all the income and expenditure it looks like he took out more money that he could have. We are £300 ish short, which means he owes the money to his company now. The net profit (after taxation is less than directors loan account is overdrawn for). What is the best course of action is this situation please? Thank you
Hi Ellie
Must admit Im sort of surprised that you boss is letting you do something like this without actually providing any guidance/training. Are they an absentee boss? Or just a grump/dont want to help their staff type?
unfortunately more like the second type, but also I like to be prepared before the meetings etc. I will be talking about this data tomorrow hoping to get some support and wanted to ask here about this matter, thank you
So glad I dont have to work for grumpy bosses, or for any bosses, any more. Always good to be prepared and to work stuff through for yourself anyway Ellie. Good luck for your meeting.
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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
Thank you Joanne. I'm thinking if it would be best to just ask a director to pay this £300 back to the company. It is not 9 months after the corporation tax period yet so this would seem to be the best solution....
So then the issue would be if he says - I dont want to/Im not going to and why should I? Then its just a case of being able to justify your reasoning and explain the tax implications.
__________________
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
