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  • Tax

    Importance of accurate record keeping



    A property developer has been disqualified from running companies, both directly and indirectly, from May 1 2018 for eight years.

    David Trathen failed to keep accurate records of his company's activities.  Investigators were unable to account for at least £141,000 of the company's income. There was also over £400,000 of unexplained expenditure from the company's bank account.

    The discrepancies came to light after the company went into liquidation and investigators started looking through the accounts.

    "Directors have a duty to ensure that companies maintain proper accounting records, and, following insolvency, deliver them to the office-holder," said Dave Elliott, head of insolvent investigations (Midlands & West) for the Insolvency Service.

    "Without such records, it is not possible to determine whether or not a director has discharged his duties properly, or is using a lack of documentation as a cloak for other wrongdoing."

    Full/source article

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    Absolutely endorse the need for good record-keeping!  Not only to comply with HMRC requirements, but so that the investor is informed at all times, of the state of their business.  This is a key service we provide to our clients, and in my opinion, one of the most valuable.  

    All the best

    Helen


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    A Rental business must monitor, weekly and/or monthly, its key indicators, "Voids" & "Tenant Debt", expressed as a % of maximum earnings.

    A Developer is a Trade and a different type of business.

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    This just shows how it can go wrong If your investing via a Company

    as a Director you become a slave to the company and its so important to do what's correct and best of the Company

    The Company money is company money its just as if you were working for some one else

    You cant just dip in and take cash unless its accounted for and taken in the correct way.

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    This is also the reason that full due diligence should be taken before you appoint a letting agent. Ensure they have a client account that has client protection insurance, they have a trading account and a deposit account. We are ARLA registered and have a ATT accountant in house looking after all our finances. I feel that many letting agents that go under have a lack of control over there finances therefore many landlords loose out.

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    [Image: New-logo2.png] Manchester based investor. I buy, sell, renovate and rent investment property in East/North Manchester Wink email: mike@brentwoodinvestments.co.uk Call: 0161 681 3724