Hello UK members,
I'm setting up a xero file for a limited company, I need to record drawings and capital for a single director company. Seeking clarification of treatment for these entries. In Australia a working director must be an employee of the entity and any funds taken from the company or vice versa are treated as director loans. Debit balance in directors loan accounts cause problems with our tax systems and need to be converted to wages or repaid.
Thank you for your help. This post is probably not in the right forum but it the only one that would allow me to post into.
Josephine Roberts, Melbourne, Australia