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Where Taxpayers and Advisers Meet

Back dating salary? Accountant says its fine.

xray123
Posts:2
Joined:Thu Aug 31, 2017 6:36 pm
Back dating salary? Accountant says its fine.

Postby xray123 » Thu Aug 31, 2017 6:42 pm

My company was only established two months ago, but I have been working on my business since July 2015.

I have asked my accountant if it is acceptable to back date salary, and he has advised I can back date to April 2016.

Is there any tax or legal implications if my company was only established 2 months ago and I want to back date pay?

bd6759
Posts:4270
Joined:Sat Feb 01, 2014 3:26 pm

Re: Back dating salary? Accountant says its fine.

Postby bd6759 » Thu Aug 31, 2017 10:05 pm

Explain what you mean by "back date". What do expect to acheive?

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Back dating salary? Accountant says its fine.

Postby robbob » Fri Sep 01, 2017 9:05 am

Practicably speaking there is unlikely to be any need to "backdate salary" - simply paying a higher salary September or October to play catch up will normally have the same result as what would have been achieved by actually paying the salary earlier - in summary i am guessing your accountant is advising you pay "catch up salary now" rather than backdated salary.


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