RENT paid to Director

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Experienced Cover User Kristie0103
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RENT paid to Director

Hi MYOB,

 

I am processing RENT payments from our business to the director.

 

How would this be best entered in MYOB?

 

Thank you


Kristie

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Ultimate Partner GDay53
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Re: RENT paid to Director

@Kristie0103

 

Welcome to the MYOB Community Forum, I hope you find plenty of useful information.

 

Is this rent for the building, the company works from, that is owned by the director?

If yes then it is an expense and the Director should be issuing the company with Tax Invoices for the Rent amounts.

And it should be entered the same as all other expenses through "Enter Purchases" and paid through "Pay Bills".

 

If the payment is for something like paying the Directors rent for his living quarters then you need to know if it is part of his employment package?  If it is part of his employement package the in that case it would still be an expense to the company but it becomes a Fringe Benefit for the Director and needs to be recorded as such.

If it not part of the employement package then I would enter it as a Directors Loan/ Drawings.

 

If my response to your query and has helped, please mark my post as a solution to help others in the future.
Graeme Day
Registered BAS Agent #24745540
First Class Accounts Clayfield
Mobile: 0402 841 627
gday@firstclassaccounts.com
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Experienced Cover User Kristie0103
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Re: RENT paid to Director

Hi Graeme, 

 

Thanks for your response.

 

This is for the rent of the building that the company works from. 

 

What expense and tax code would I use for this? 

 

Thank you 

 

Kristie

MYOB Moderator Neil_M
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Re: RENT paid to Director

Hi @Kristie0103

 

Generally speaking if you are not sure which account or tax code to be using in a particular transaction, I recommend having a chat with your accountant over which account and tax codes you should be using.

 

That being said some of our great forum partners, such as @GDay53 , may have their own thoughts on which accounts and tax codes to use.

Regards,
Neil

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Ultimate Partner GDay53
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Re: RENT paid to Director

As I said in the original answer,

 

"Is this rent for the building, the company works from, that is owned by the director?

If yes then it is an expense and the Director should be issuing the company with Tax Invoices for the Rent amounts.

And it should be entered the same as all other expenses through "Enter Purchases" and paid through "Pay Bills"."

 

There should be an expense account for Rent usually found under a header account called Occupancy Expenses.

Under normal circumstances the tax code would be GST.

To be cretain just check the Tax Invoice, if no Tax Invoice ask WHY NOT?

 

If my response to your query and has helped, please mark my post as a solution to help others in the future.
Graeme Day
Registered BAS Agent #24745540
First Class Accounts Clayfield
Mobile: 0402 841 627
gday@firstclassaccounts.com
MYOB Certified Consultant
MYOB Diamond Partner
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