- Original Poster
- #1
I'm the only director of a company I incorporated last November but ready to go from dormat to actively trading on Companies House.
I'm going to be purchasing stock from my supplier who wants 30% upfront and 70% upon completion of production.
I have a business bank account that I've opened with Lloyds Bank, as well as a personal account with them. The business bank account has zero balance at the moment since there's no trade happening and no funds have been added yet.
So my question is, should I be transferring money from my personal account into the business bank account?
If so, does this class as a director's loan and can I do this multiple times as and when I have the funds available to put into the business bank account, to pay the supplier?
What are the steps I need to take in order to show this money as a director's loan (first time director and first time owning a company, sorry if this is a dumb question)? What are the tax implications of doing it this way or is there no tax involved?
Or can I just pay directly from my personal account? How do I go about showing this as money put into the business when it comes to the accounts?
I'm going to be purchasing stock from my supplier who wants 30% upfront and 70% upon completion of production.
I have a business bank account that I've opened with Lloyds Bank, as well as a personal account with them. The business bank account has zero balance at the moment since there's no trade happening and no funds have been added yet.
So my question is, should I be transferring money from my personal account into the business bank account?
If so, does this class as a director's loan and can I do this multiple times as and when I have the funds available to put into the business bank account, to pay the supplier?
What are the steps I need to take in order to show this money as a director's loan (first time director and first time owning a company, sorry if this is a dumb question)? What are the tax implications of doing it this way or is there no tax involved?
Or can I just pay directly from my personal account? How do I go about showing this as money put into the business when it comes to the accounts?
