Dla

Hi
I have a company who at the end of their 3rd 1/4 this year had cap & res of £17K, (£16.5K profits for this year, nothinh b/f). Current assets £127K includes DLA of £45k all taken this year, Current liabilities £115K, £50K out to bank £15K CT overdue, and I would say not enough WiP to crawl out of this in the short term.
Any idea's as to how I should start off the next meeting?
P
I have a company who at the end of their 3rd 1/4 this year had cap & res of £17K, (£16.5K profits for this year, nothinh b/f). Current assets £127K includes DLA of £45k all taken this year, Current liabilities £115K, £50K out to bank £15K CT overdue, and I would say not enough WiP to crawl out of this in the short term.
Any idea's as to how I should start off the next meeting?
P
0
Comments
"you've got to put 45k back into the company within the next quarter or the company will have to pay 25% in tax for you as directors' to have use of that money".
Don't you just love it when clients' draw out too much money! :001_wub:
Regards
Dean
Best regards
Steve
Steve OSC = £2
Dean,
You say that they have to pay back by the end of the accounting period or suffer the 25% but I thought that "if" the loan is repaid within the 9 months 1 day (see the pig fly over!) after the year end then relief is available and if :laugh: they do repay then should I still complete a CT600A?
I have not been doing so up to date electing to make a note on the accounts regarding repayment of directors loans and giving a date. Have I been neglegent? :blushing::blushing::blushing:
Is there a materiality level for a CT600A as well because you know what it is like they just draw down willy nillie and leave us to sort it out at the end of the year with a computation of the DLA.
Poodle
That is quite correct. My comment will buy you some time
Obviously you need to bare in mind the P11D position as at 05.04.08. If they want to avoid Class 1a NI then they have a month or so to sort it :thumbup1:
Regards
Dean