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Help where to post!

  • 2 posts
  • # 54417

Hi. I'm just starting my Level 2 Bookkeeping course, whilst also trying to keep the accounts for hubby's new business. My query is this.....he claims expenses back from his company, we then invoice the company he is consulting for, for their proportion of those expenses. For example; if the telephone bill is £20, he'll claim it & his company will reimburse him the £20, but £10 of it may have related to work done for the company he consults for, so we would then invoice them £10. I'm getting confused on how to post all the double-entries.......someone help please!!!!

  • 698 posts
  • # 54418

Hi Mary

Here is how I would do it (Assuming you are using an acccounts package)

Step 1 post the expenses claim

Debit     Telephone Expenses
Credit    Creditors Account - Expenses

This is done by posting a supplier invoice to telephone expenses  (Making sure you have the correct supplier account selected)

Step 2 Recharging the client

Debit Debtors - Customer
Credit Telephone Expenses

This is done by raising a sales invoice on the relevant customer account and ensuring it offsets the telephone expenses rather than going to income.

Payments and receipts are dealt with in the usual way.

What package are you using.

Kind regards
Stuart

  • 2 posts
  • # 54419

Thank you so much Stuart.....of course it all makes perfect sense now you've explained it!!
I'm doing it all manually at the moment......I get a Sage package once I start Level 3 of my course, so thought I'd wait & see what I think of that.
Do you mind me asking you another question?
Someone said if I apply for a P11D dispensation for hubby, we can claim back his expenses from taxman.....I'm not sure about that, or how to go about it. 

  • 698 posts
  • # 54434

marya65 said:

“Someone said if I apply for a P11D dispensation for hubby, we can claim back his expenses from taxman.....I'm not sure about that, or how to go about it. ”

Hi Mary

By recording the expenses in his accounts as listed below you arer claiming them back from the tax man as his expoenses are reducing his taxablr profit and therefore reducing the amount of tax he has to pay.

P11d's come into play if your husband is trading via a limited company if he is a sole trader or partnership then P11d's are not applicable, If your husband if opertating through a limited company then he will need to file a P11D to show the benefits in kind he has recieved from the company this including re-imbursed expenses.

However you can apply for a dispensation if your husband receives no benefits in kind from the company to save just doing a P11D for re-imbursed expenses.

If you need further clarification give the ICB helpline a call

Cheers
Stuart

  • 2 posts
  • # 54730

marya65 said:

I'm doing it all manually at the moment......I get a Sage package once I start Level 3 of my course, so thought I'd wait & see what I think of that.


Have you considered using online bookkeeping software? 
Fusion Accounts is accredited by the ICB and bookkeepers receive automatic discounts on the pricing plans.  Fusion Accounts can be accessed anytime, anywhere.  http://www.fusionaccounts.com

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