Domain reg fees - paying personally

[UKSBD]

A bit of background info.

I own and run VAT registered, predominantly web based business; marketing, advertising, SEO, web design, etc.

I have lots of free time so often experiment with new ideas which generally involve creating little websites, sometimes these little websites make a bit of money (which goes to company not me) more often than not, nothing really comes of them, but I don't delete the websites I just leave them on the back burners and occasionally update them or use them to link to other sites.

Most of the domains are registered in my own name and paid by me personally rather than by the company. (in other words, Company gets no VAT or Tax benefit)

This was fine when it was just 20 or 30 sites and only costing £3 a year reg fees.

I'm now up to 80+ domains, reg fees have doubled and if I was to sit down and work it out I'm probably paying well over £700 a year personally now in domain reg fees alone.

Going forward can the company pay the domain registration fees and claim the VAT back as and when they come up for renewal, even though they are personally registered in my name?

If so, can I also back date any previous domain registration fees I have paid, charge them to the company and the company claim the VAT back?

 

[STDFR33]

I've only had a quick glance and I'll have another look tomorrow..

Domains bought in your name, and paid by you personally ... are you sure that the revenue generated from these sites were that of the company?

 

[UKSBD]

I do a bit of affiliate work, sell advertising space, sell banner space, etc.

If I put a banner on one of my personal sites any money that banner generates goes to the Company.

 

[TheCyclingProgrammer]

If they are being used for business purposes, just transfer the domains into the company name and have the company pay for them. If they have UK VAT then get the invoices in the company name so you can reclaim it.

 

[Alan]

I do similar, but in fact I register the domains in the company name.

You could sell the domains to the company at a fair price, perhaps go to Acorn Domains forum put the list up for offers, use that as a price to sell to your company.

 

[UKSBD]

If they are being used for business purposes, just transfer the domains into the company name and have the company pay for them. If they have UK VAT then get the invoices in the company name so you can reclaim it.

Technically I work 30 hours a week for my company.

I probably spend another 50 hours a week, some of those hours playing with countless little sites that may (in my dreams) become the next facebook

This is all in my own time rather than company time, does that have any baring on your reply?

Edited to add that not all of those 50 hours are building personal sites

 

[Alan]

How do you segregate it? It sounds like you do 80 hours for the company, 30 hours on normal operations and 50 hours on R&D and product development.

 

[UKSBD]

It's almost impossible to distinguish.

I work from home, the computer is always on, I'll spend a few hours watching Judge Judy, hang around on forums, answer the phone a few times a day (another part of the business sells a product), go do some shopping, update some personal sites, do an hours work on business sites. think of a new idea, register a new domain, build a site, do the school run, watch the antique programmes, get on forums in the evening, do a bit of blogging.

Basically I'm faffing about 90% of the time, but technically work 30 hours a week for the company.

 

[Alan]

I own and run

When you are faffing around you are working for the company regardless of hours ...

 

[UKSBD]

If they are being used for business purposes, just transfer the domains into the company name and have the company pay for them. If they have UK VAT then get the invoices in the company name so you can reclaim it.

If, as it looks like, all these domains could have been in the company name from the day I registered them. Can I backdate the payments I personally paid and charge the company that amount?

 

[MikeJ]

I've half a dozen domains in my name. I put the invoices through as expenses, the company reimburses me, and claims the VAT back on the payment. They're in my name simply because when we started we operated as a partnership, and went limited after around 3 months. I never bothered to transfer them to the company.

They're clearly company websites, carrying business information (we don't do e-commerce or affiliate work)

 

[UKSBD]

I've half a dozen domains in my name. I put the invoices through as expenses, the company reimburses me, and claims the VAT back on the payment. They're in my name simply because when we started we operated as a partnership, and went limited after around 3 months. I never bothered to transfer them to the company.

You pay the registration fees personally (including the VAT)?
example £5.00 +VAT £6.00

You put the £6.00 through as expenses and claim the VAT back?

How do you account for the fact the Company hasn't got a VAT invoice?
Or do you just use the original invoices from the registrars that are in your name?

 

[UKSBD]

Wow it's frightening looking back at just how much I personally spent rather than putting through the company

I have 220 invoices dating back to 2005 and in the early days I was paying for hosting packages personally too

 

[UKSBD]

Have totalled up the invoices and I have personally paid £4,136.58 (inclusive of VAT) since 2005.

Can I now put this though the Company as an expense?

If so, can the Company claim back the VAT on any of the invoices?
If Company can claim VAT back is there a time limitation
ie. I can only claim the VAT back on the ones from a set date?

 

[MikeJ]

You pay the registration fees personally (including the VAT)?
example £5.00 +VAT £6.00

You put the £6.00 through as expenses and claim the VAT back?

How do you account for the fact the Company hasn't got a VAT invoice?
Or do you just use the original invoices from the registrars that are in your name?

Just use the original invoices. I put loads of expenses through the company - hotels, flights, car hire, meals when travelling. If we need anything around the office, from furniture to PCs, these are generally invoiced in my name and claimed back. They're all legitimate business expenses, and it's such a pain to get an account set up for ad hoc payments, it's just simpler to pay with a credit card and have the company reimburse me.

 

[UKSBD]

thanks,

I guess the question now is, can I backdate everything?

Even if I the company can't get the VAT back it would be nice if I could get £4,136.58 out the company tax free.