Self employed on your own payroll!

I have been looking after a particular clients bookkeeping for 7 months now. I was given a pile of mess to sort out the previos bookkeeper had no filing system no nothing. I also looked after the payroll again no records and didn't even do the a payslip. They have 30 employees!
Anyway my client has been advised by his accountant to use a different bookkeeper recommended by this chartered accountancy firm.
I did the hand over the other night and explained to the new bookkeeper that the previos bookkeeper had put the partner on his own payroll. I said I have sorted this out ;i e I have taken him off etc.as this was wrong. The bookkeeper sat there and said y is this wrong. I said you can't put yourself on the payroll if you are a partner or sole trader. He said yes h can! I couldn't believe it! I told him no you can't but he be littled me.
My client also had a limited company so like every accountant near enough advises lond as the conditions are right put the director on the small salary and top up with dividends. Yet again he told me this was wrong and you have to pay tax somewhere. I said yes corporation tax will be a lot lower than paying a high rate of tax on paye.
I just can't believe it he has mived his books to someone who is not going to save him tax just cost him more!
Doesn't it annoy you?
Put ya self on the payroll?!
Anyway my client has been advised by his accountant to use a different bookkeeper recommended by this chartered accountancy firm.
I did the hand over the other night and explained to the new bookkeeper that the previos bookkeeper had put the partner on his own payroll. I said I have sorted this out ;i e I have taken him off etc.as this was wrong. The bookkeeper sat there and said y is this wrong. I said you can't put yourself on the payroll if you are a partner or sole trader. He said yes h can! I couldn't believe it! I told him no you can't but he be littled me.
My client also had a limited company so like every accountant near enough advises lond as the conditions are right put the director on the small salary and top up with dividends. Yet again he told me this was wrong and you have to pay tax somewhere. I said yes corporation tax will be a lot lower than paying a high rate of tax on paye.
I just can't believe it he has mived his books to someone who is not going to save him tax just cost him more!
Doesn't it annoy you?
Put ya self on the payroll?!
Comments
Erm..... Negligent much?! I'm gobsmacked. That's just awful. Sadly there are a lot of seemlingly qualified people out there who make these kinds of mistakes. And sadly some clients just won't know the difference and will have to learn by trial and error which accountants are good and which aren't. Even more sadly, sometimes they will never find out that their accountant is costing them money not saving them it.
Obviously I am making comments based on a face-value reading of the thread and appreciate there are always 2 sides to every story but... I can't think of any way in which this doesn't just speak for itself!
I hope they have good PII cover.
Tracy xx