New queries, issue 4201

Conjugal CAs

(Priority will be given to replies from newcomers to Readers’ Forum.)

I act for two clients who are husband and wife. They each have their own limited companies. The husband’s makes a taxable profit but the profits of the wife’s company are currently covered by losses brought forward.

They have just brought in their records for the year ended 31 March 2009 (if only all my clients were so prompt) and the husband happened to mention in passing that his company had paid his wife’s company £1 000 by cheque dated 31 March 2009.

The purpose of this was to enable the wife’s company to purchase a computer which would then be transferred to his company.

The husband explained that he wanted to purchase another computer for his company before the year end but this had slipped his mind until 31 March and he wanted to...