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Limited company first year accounts mess

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Hi I am a newly set up bookkeeper and have finally got my first client which is wonderful, but...his accounts for his limited company are a bit messey and I would be very grateful for any advice on the best way to sort them out.  Moving forward he's setting up as  a sole trader instead.

Company set up in June 16 by my client and his working partner, both directors of the company. (Plasterer / Kitchen fitter)

Started trading Dec 16 then in May they fell out and other director went off to do his own thing but refuses to resign as director. 

They had an initial meeting with an accountant when they set up but nothing further happened (e.g. Formal engagement). My client has been under the impression that the accountant was working for him but of course as they haven't nothing has been done.  I have now filed the Confirmation Statement for him (late) and crossing fingers.  

They did not know they had to register for Corporation Tax either so I will be doing that shortly when I get the rest his details to log in.

The company is not registered for VAT and there will be very little left in terms of profit, if my client is lucky.

Specific questions:

Subbies - he has used a number of sub-contractors, some invoiced, some just paid cash but of course had no idea he should have been deducting CIS.  How on earth do I go about sorting that?

Directors salary - there is nothing posted in the accounts (he has been using FeeAgent) to suggest either director has taken out any money at all!  Certainly not as a salary.  If they really haven't taken anything out then is it ok to just split whatever is left in the company between the directors as long as it is under £5000?  

Having said that, as the other director has clearly not been acting in the interests of the company and has not fulfilled the duties of a director, is my client still liable to pay him.  They both own 1 share each in the company.

I'm meeting with my client tomorrow morning and hope to get to the bottom of the company's finances and go through with him the next steps in getting the accounts sorted.  (Oh the fun I shall have going through all his expenses in Freeadent and re-coding them! 😉 )

Thanks for reading


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Lauramp said:

Edited at 30 Jun 2017 07:38 AM GMT

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