David Barry    Accountants and tax advisers         020 8252 7018/07877671423

"I am a director of a limited company and very confused," said the client.  "I have just been assessed to £67,375 to tax and all I have from my company is a tiny salary and my "make-up:" that is dividends voted.  Why?

Anyhow, how do I know? Well, my accountant came on the phone (that's me, you know) ranting and raving.  "Who's filled out your PllD for you?"
"What's that, I have never heard of it?"

"Well, I assume that you signed and was not just signed in your absence?" (that's the accountant talking-me you know?)

"I don't know...don't know...don't know."

Poor client.  Poor accountant.  He is the one who has to sort out the mess.

On goes my investigator's hat.  Was there there a wholly, exclusively and necessarily for the trade claim made?  The old S189 Taxes Act 1988?  (now its called BIM 37025.) http://www.hmrc.gov.uk/manuals/bimmanual/BIM37025.htm

I phone the contractor, find one was completed but not filed.  I then assess Revenue & Customs software (it is superb and the subject of a future article,) and I file an amended return for 2008.

One week later, the taxpayer's code is amended and the K code disappears (I bet you don't know what that is) and guess what the full personal allowanc reappears on the client's amended tax code.

And what about the client?  None the wiser.  Knows that everything is alright.  Why?  The accountant says so and for that matter, so does the client.

The worst part.  How do you explain to the client that there has been two hours work behind the scenes (by me) and that I must charge my miserable and horrible £30 per hour (only £60 plus costs in total) to sort out a horrible mess.

What then is the best way to pay exoenses of a company?  Ideally, to pay by company credit card or failing that to pay and to get immediately re-imbursed by trhe company so that nothing appears on the P11D benefits-in-kind form.

So who would be an accountant?  Who would have my job?

 Ring the tax experts, the tax return experts,  if you have expense problems.  That is phone me.  THat's right.  Your long suffering accountant who will be very, very happy to here from you.

David Barry    Accountants and tax advisers         020 8252 7018/07877671423