Last Min BTC help
rachb790
Registered Posts: 3 New contributor 🐸
Hi
Little late in the day - but for some reason I'm having a mental block :blushing: - are directors salaries an allowable expense when working out your adjusted trading profits?
Thanks in advance!:001_smile:
Little late in the day - but for some reason I'm having a mental block :blushing: - are directors salaries an allowable expense when working out your adjusted trading profits?
Thanks in advance!:001_smile:
0
Comments
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Yes, they are treated just like staff wages
Good luck. I you do well0 -
Thanks for that - I think its just because of the Jun 06 paper where Shabnam Ali's salary was added back - why is that? This is what has caused the confusion for me.0
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Directors salaries for sole traders and partnerships are treated as drawings therefore get added back. This is the same for any personal use expenses which are also added back for sole traders / partnerships.
For Limited companies, the directors salaries are allowable, as are the 'private use' elements for expenses.
Hope that helps,
Zoe0 -
The salary is added back because he is a sole trader and not a director of a limited company. The salary makes up part of the taxable trading income.
Hope that helps,
Good luck with tomorrow, I've got a headache from this mornings MAC and I'm now dreading tomorrow....booooooo0 -
Thanks so much Zoe - much appreciated.
Rachb790:001_smile:0
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