David Barry Accountants and tax advisers 020 8252 7018/07877671423
Problems with limited companies
I have now posted out forms (please download and keep ) 64-8 (authorities to act on behalf of the company for vat, self assessment and corporation tax) and CT 41G (details of the company) to Revenue and Customs. Please note that this is the fourth time I have completed these tasks on behalf of your limited company.
In the forms 64-8 and 41G I have said there is no paye scheme open for the company so that therefore you have drawn no salary from it.
This is as a direct result of our discussions whereby we enter any monies drawn to you as repayment of your directors loan account only and therefore is not seen as salary.
You must advise me now in writing (and now that the new tax year of the 06 April 2010 is approaching) if it is still the case that you do not wish to begin a paye scheme on behalf of the company.
(You can see that on both forms that I attach for your perusal I have stated there to be no paye scheme open and so consequently that the director is drawing no funds from the company as salary.)
Please note that in normal circumstances I would advise any director of a company to put funds into their limited company account thereby funding a directors salary thereby increasing the overheads of the company and reducing its corporation tax together with the added advantage of providing you better with a retirement pension via your national insurance contibutions at retirement age.
However in your case this is not relevant as the company has made tax adjusted losses in the period to 31 January 2009 (I am not sure about accounts to 31 January 2010 as these have not been prepared) and also because you have a large directors loan account in credit.
I would be graetful if you can acknowledge receipt of this email and also look forward to your written instructions that on behalf of the company you still wish to not open a paye scheme.
David Barry Accountants and tax advisers 020 8252 7018/07877671423