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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 16552
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Is the serve private and confidential I presume? Uk, None

This answer was rated:

Hi is the serve private and confidential I presume ?
JA: Where is this? It matters because laws vary by location.
Customer: Uk
JA: What steps have been taken so far?
Customer: None just yet
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: Not sure

Hello, this is Jim and welcome to JustAnswer.

Thank you for the question, just a note that as an internet forum, it is not private so we ask that personal details are not given when you ask a question - if they are, the site moderators will redact them.
If you could please set out your question for me.

Customer: replied 14 days ago.
Hi yes I'm a new director of a new company that started last march and come to do my year end /books I have realised that I have made mistake with the company money and spent money that does not class as expenses I'm very worried about this and wondered what would be the best course of action other than contact my accountant

Thanks, ***** ***** not see a problem unless a third party was affected due to this (i.e a customer of yours or a supplier)

The Companies Act 2006 applies to you as you are a director - meaning that you could be liable if you :

● Failed to act within the powers under the company's constitution;

● Failed to act in the company's best interests;

● Failed to exercise reasonable care, skill and diligence when carrying out their duties;

● Failed to refuse benefits from third parties;

● Failed to avoid a conflict of interest;

● Failed to exercise independent judgment; and

● Failed to declare any personal interest in a company transaction.

Are you worried in that the money being spent has meant someone else has been affected?

Customer: replied 14 days ago.
Hi thanks for your reply no third party has been affected but I thought it was illegal to spend company moneyly unless it was directly on approved expenses as I've looked this up recently online while doing my year end ?
Customer: replied 14 days ago.
Hi no other party has been affected as far as I'm aware currently

Thanks, ***** ***** be a breach of fiduciary duty under the Companies Act though my understanding is that as long as you repay it to the business then it would be fine though it would be more of an accounting issue in my view.

I can opt out so that you can speak to an accountant on this site if that helps?

Customer: replied 14 days ago.
please I think this would help thank you for your help on this matter

No problem, I will opt out and someone else will be along soon, thanks

Customer: replied 14 days ago.
Hi just waiting someone else joining chat ?
Hello,
It seems the professional has left this conversation. This happens occasionally, and it's usually because the professional thinks that someone else might be a better match for your question. I've been working hard to find continuing a new professional to assist you with your question, but sometimes finding the right professional can take a little longer than expected.
I wonder whether you're OK with to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Oleksandra
Customer: replied 13 days ago.
Hi yes just waiting on someone else please if they can assist?

Hi

May I ask how much does this amount to and what type of expense you paid yourself for it and I assume you paid it tax free - is there sufficient profits left in the company for year end when the corporation tax has been paid ?

Do you keep your own acconts and will you be filing your own tax return
Thanks

Sam

Thanks

Sam

Customer: replied 13 days ago.
Hi it was different items i did not realise you could not take money from ltd compnay until doing my year end and looking into it is when i found out.
It is around 20000 that i owe and i have an accountact to do my tax return amd when my tax is paid the company will still have a profit yes
Thanks

HI

So what oitems as I cant answer with aone answer fits all scenerio

Thanks

Sam

Customer: replied 13 days ago.
Hi it was dat to day things personal expenses like shopping clothing leisure non buisness related items basically too many to list thanks

So with respect what made you think you could use company money - ?

that aside there are three ways of approaching this as your own accountant can also clarify but only two are really going to be the safest option to avoid being struck off for misappropriation of funds

1) You declare these items as a company benefit which you can only do if paid using a company credit card but then would have to claim ALL expenditure even that which is company costs  on which the company then pays class1A national insurance and you would pay income tax on these amounts

Link here re company benefits https://www.gov.uk/guidance/how-to-complete-forms-p11d-and-p11db

The second is that you pay all the money back so you have covered all non business expenses and you need to do this before the year end - if you cant then you can have this treated as a debit to the directors loan account but will pay tax on it as a company benefit as above and also the company pays tax on this debt too

Link here re directors loans  https://www.gov.uk/directors-loans

Finally you pay it as a dividend however if you have used the company credit card  this is NOT an option

Ask your own accountant the ebst way to proceed and obviously do not spend any more money in this fashion . you should pay yourself a set annual salary and dividends to have money for your perdsonal life

Thanks

Sam

Customer: replied 13 days ago.
Hi yes this is all clear now thank you for your advice really appreciate you time today

Hi

You are vwey welcome

Thanks

Sam

Sam, Accountant
Category: Tax
Satisfied Customers: 16552
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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