Hi there
Our LLP has 2 members and we split our profits equally at year end and pay ourselves accordingly. How do we document this in terms of categories? It’s not a dividend so I currently have put down as directors renumeration but is that correct? And should this be categorised separately from reimbursing the directors loan accounts when either one of us have paid for something with our personal bank accounts. Thank you
Hello @AmyGardener
I would reccomend confirming this with your accountant (the support team are not registered accountants).
I will leave this thread open for now as there are some accountants on the forum who may comment
LLPs don’t have directors so there should be no entries in either directors’ loans or directors’ remuneration. Any funds taken out of the business are drawings, and shouldn’t show up as an expense in the profit and loss. I’m not familiar with the way QF works in terms of partnerships, but each partner should have a “current account” and any transfers of funds between the partner and the business should be reflected in this account. The reimbursement of expenses can also go here. It is not the same as a director’s loan account, which shows as a liability in the accounts, rather it forms part of the members’ funds, so in the bottom half of the balance sheet.