Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
You are a Director of the company and thus an employee per se. Any salary paid to you must be made under PAYE arrangements. I do hope that this is the case. Repayments of directors' loans and refunds of personal expenditure made on behalf of the company do not, however.
1. Payments in advance may possibly have to be refunded so they are entered in your accounts as creditors payable within one year. When brought to account you merely Debit Creditors, Credit Sales.
2. Yes it is, but if the accrued expenses when the chips are down differ from the estimate there will have to be an adjustment. I would do this through a Profit and Loss Account Over/under ledger heading and bring it to account in the next accounting year. It is a perfectly normal practice.
3. As the payments in advance have been placed in creditors they will not come into the Corporation Tax (CT) computation. The estimated accrued expenses will reduce the company's exposure to CT.
I do hope that you have found my reply of assistance.
For expenses for which you have receipts there is no problem. For suppliers where you do not know the actual bill, but have an idea of the cost then you post the item as Charge Cost of Sales, Credit Creditors. When these sums do become payable you merely Debit Creditors Credit Cost of Goods Sold. Any discrepancy would be written on of off using a Profit and Loss Over/Under Account in the next accounting period..
When you receive payments in advance you merely Debit Cash/Bank and Credit Creditors. When at a later stage these payments are actually for work done you merely clear Creditors and Credit Sales.
Is that a little clearer?
In my opinion you can. Alternatively you can wait until the works are actually done and the supplies needed. As an accountant I incline to the former view as it will make the accounts more of a true and fair view of the situation.