How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask F. Naz Your Own Question

F. Naz
F. Naz, Chartered Accountant
Category: Business
Satisfied Customers: 1063
Experience:  Doing Chartered Accountancy
20040807
Type Your Business Question Here...
F. Naz is online now

Limited company incorporated in Scotland with the following

Customer Question

Good Morning,Limited company incorporated in Scotland with the following business activities:
Primary - Other letting & operating of own or lease real estate
Other - Accounting/audit servicesThe director introduced a property (in Scotland) in 2015 and has been renovating it ready to be letout. The company is the legal owner, but the property was purchased in full by the director. The value of the property will be held in the directors loan account. (they have currently set it up as £130k for one share but I have advised we process a special resolution to move this to DLA).
The sole director of the company also worked through a recruitment company for around 6 months doing accountancy work. The contract was in the name of the limited company, not the director.The fees for the accountancy work has been paid gross into the clients business account and they have been using this revenue to pay for the refurb of the property.The company was set up in 2015 and the year end is 30th June 2016.So far no rental income has been received only expenses. Can the income from the short contract be used to offset the losses that will undoubtedly arise from the refurb of the property, or can the losses generated only be carry forward to next years profits and corp tax will be due on the income from the short service contract?Any advice that you can offer regarding this whole scenario would be really helpful. I think I know the answers but I am doubting myself so would like some reassurance.
Many thanks
Submitted: 8 months ago.
Category: Business
Expert:  F. Naz replied 8 months ago.

Hello

Please mention the deadline and is this your real life scenario or some school assignment?

Expert:  F. Naz replied 8 months ago.

Hello

Please mention the deadline and is this your real life scenario or some school assignment?

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I Couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • F. Naz

    F. Naz

    Chartered Accountant

    Satisfied Customers:

    1063
    Doing Chartered Accountancy
< Previous | Next >
  • http://ww2.justanswer.co.uk/uploads/JawaadAhmed/2009-6-27_12137_SIs_SHadi.jpg F. Naz's Avatar

    F. Naz

    Chartered Accountant

    Satisfied Customers:

    1063
    Doing Chartered Accountancy
  • http://ww2.justanswer.co.uk/uploads/LI/lindaus/2012-6-10_04811_IMG20120609164157.64x64.jpg Linda's Avatar

    Linda

    Business Analyst

    Satisfied Customers:

    1017
    MBA,
  • http://ww2.justanswer.co.uk/uploads/homeworklady/2008-11-24_125231_susannewavatar.jpg SusanAthena's Avatar

    SusanAthena

    Tutor

    Satisfied Customers:

    122
    10 years managing at an IT consulting company
  • http://ww2.justanswer.co.uk/uploads/PR/ProMBA/2012-6-7_154051_beach.64x64.jpg Christopher's Avatar

    Christopher

    MBA, Business Owner

    Satisfied Customers:

    107
    McCombs School of Business
  • http://ww2.justanswer.co.uk/uploads/BR/brittanyshock1/2012-6-16_174743_JAphoto.64x64.jpg Brittany's Avatar

    Brittany

    Professional

    Satisfied Customers:

    64
    AA/Accounting BS/Business
  • http://ww2.justanswer.co.uk/uploads/NE/nest9/2011-12-15_202629_me.64x64.jpg nest9's Avatar

    nest9

    MBA

    Satisfied Customers:

    48
    MBA in Organizational Leadership. Bachelor's of Science in Business Management. Professional experience as a Supervisor/Manager.
  • http://ww2.justanswer.co.uk/uploads/68/6822499/2011-12-15_4954_Self2.64x64.jpg 6822499's Avatar

    6822499

    MBA

    Satisfied Customers:

    31
    Strategy and Process Expert, Certified Project Management Professional, Baldrige Senior Examiner, and Lean Master Black Belt
 
 
 

Related Business Questions