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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 7231
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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My bother has limited company with a partner..against my

Customer Question

My bother has limited company with a partner..against my brothers wishes the partner keeps taking on cash jobs but putting the cost of the material through the business with no record of the building or any profit acknowledged..is this illegal ?
JA: Have you talked to a financial professional about this?
Customer: No
JA: Anything else you want the Accountant to know before I connect you?
Customer: Does this make my brother liable if if deemed illegal even though he is not authorising this way of working
Submitted: 7 months ago.
Category: Tax
Expert:  taxadvisor.uk replied 7 months ago.

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Expert:  taxadvisor.uk replied 7 months ago.

Thank you for your question.

Taking money out of the business and not properly accounting fo rit is fraud and a criminal offence.

Directors have a responsibility under Company law to keep proper accounting records.

Non disclosure of income in the accounts filed with HMRC carries fine and penalties.

Your brother should make his business partner aware of this and if the sutuation does not improve he should part company with the partner.

My aim is to give you a professional service. I hope this is helpful and answers your question.
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