Last Min BTC help

rachb790
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:

Comments

  • pensilnek
    pensilnek Registered Posts: 19 New contributor 🐸
    Yes, they are treated just like staff wages

    Good luck. I you do well
  • rachb790
    rachb790 Registered Posts: 3 New contributor 🐸
    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.
  • Elena
    Elena Registered Posts: 11 New contributor 🐸
    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,
    Zoe
  • pensilnek
    pensilnek Registered Posts: 19 New contributor 🐸
    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....booooooo
  • rachb790
    rachb790 Registered Posts: 3 New contributor 🐸
    Thanks so much Zoe - much appreciated.

    Rachb790:001_smile:
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