UK Expense claim for wages paid to an employee

[Barca]

If the director of a limited company paid the wages of an employee of the company out of his own money, could the director reclaim this money from the company in the form of an expense claim, and if so, what would the journal entries be?

 

[ladyrider]

Wages or self employed pay? If true wages those would have to be reported on payroll for that employee for the employer to pay appropriate WH and employer paid taxes then the resulting entry would be

Wages DR
Payroll Liab CR
Owner Contributions CR
Net Pay would be ZERO since there is nothing coming out of the bank
(then I'd tell the ditector to not do that again)

If a subcontractor payment then
Subcontract Labor DR
Owner Contributions CR

 

[Fidget]

By virtue of somebody being employed by the company, their wages should go through the company payroll. Limited companies are also subject to audit, and directors' expenses claims are quite high profile. So to try to pay somebody 'off payroll' and claim the cost as an expense for a director... audit would be all over it. HMRC wouldn't be best pleased either when it found out due to paying somebody off payroll means no employer/employee taxes paid for that person.