Help needed getting back on the straight and narrow!

[Hemingfield]

Hi,

I'm coming to the end of my first contract using my own co. As I was in serious financial shape personally leading up to the contract I've had to divert most of myco income to stop balifs etc. Things are looking a bit more stable now so I seriously need to pull my accounts back into shape - I wish I could've handled things differently but there simply was no choice.

Has anyone any suggestions? Do I have to justify every transaction made on my business account? Or can I simply take the minimum salary and the rest out as dividends up to the point where the accounts match?



Hem

[NotAllThere]

... Or can I simply take the minimum salary and the rest out as dividends up to the point where the accounts match?

That's what I'd do. But I'd consultant an accountant first.

[BlasterBates]

You'd better see an accountant. The bank transfer itself confuses matters, and wouldn't look good in an audit, but as long as it matches up I think there shouldn't be a big problem.

[Alan @ BroomeAffinity]

Hemingfield, you're not in an unusual position but you really should speak with an accountant. All the payments could be retrospectively declared as dividends but you need to get the paperwork sorted.

[BrilloPad]

Hi,

I'm coming to the end of my first contract using my own co. As I was in serious financial shape personally leading up to the contract I've had to divert most of myco income to stop balifs etc. Things are looking a bit more stable now so I seriously need to pull my accounts back into shape - I wish I could've handled things differently but there simply was no choice.

Has anyone any suggestions? Do I have to justify every transaction made on my business account? Or can I simply take the minimum salary and the rest out as dividends up to the point where the accounts match?



Hem

How long until end of company year? I believe first year can be up to 17 months.

When I ran a ltd my accountant told me he did not care what happened during the year - as long as at the end I had borrowed less than £5k.

[Netraider]

I was in exactly the same position. I got in touch with a local accountant (Belfast) who was used to dealing with contractors accounts and legislation.

Accounts and everything sorted. Paperwork prepared. All I had to do was sign all the papers put in front of me.

I'm now back with a recovering credit record and a good accountant running my books.