Serving Community Enterprise

Accounting Error

Hi

We set up our CIC in June last year. We've been taking money for living expenses as drawings. I know now that this isn't the correct way to do things. I know we need to invoice as another entity or ourselves, but don't have a named business re individual self assessment, as we had previously closed down a partnership to solely run the CIC.

Question 1 is can we backdate invoices?
Question 2 is how do we do this if we don't now have a private registered business as individuals? (We were a partnership)
Question 3 with ref to question 2, we want to run the non CIC aspect of a business, together but would this create endless streams of paperwork?

Thank you in anticipation

Replies to This Discussion

Permalink Reply by Mahmood Reza on February 23, 2020 at 14:14

Short answer is yes, the invoice will be a record of a transaction that has occurred - I am assuming VAT is not an issue. Subject to timings & amount (ie over £1,000) the 'drawings' will be declarable via self assessment. If your partnership was previously registered then you should have already have UTRs.

There may be possible penalties, subject to the dates when 'drawings' were made

Hope this helps

Regards

Mahmood

Permalink Reply by Wenderlynn on November 9, 2020 at 5:17