How to add money on my business account.

Discussion in 'Accounts & Finance' started by johnp1, Sep 23, 2019.

Thread Status:
Not open for further replies.
  1. johnp1

    johnp1 UKBF Newcomer Free Member

    19 2
    Dear friends, at the beginning of the year I borrowed my ltd company with the maximum allowance (an accountant told me that I can borrow my own company with a certain amount per year).
    I don't remember the exact amount but it wasn't too much.
    In any case, I need to make a purchase in behalf of my company and I need to top up my business account again, this time with more money.
    Is there any special procedure that I must follow or I can simply go to the bank and transfer the money? The money are from my personal savings.
    Thank you for your assistance!
     
    Posted: Sep 23, 2019 By: johnp1 Member since: Oct 4, 2018
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    25,262 3,076
    No idea what borrowed my ltd company with maximum allowance means.
    However paying into your business bank account yes can be done by normal means - cash, cheque, transfer from your own account etc.
     
    Posted: Sep 23, 2019 By: Mr D Member since: Feb 12, 2017
    #2
  3. johnp1

    johnp1 UKBF Newcomer Free Member

    19 2
    I would like to apologise for the confusion.
    I will reprhase. If I am the director of the company, can I simply give money to the company without any implications?
    Basically I want to transfer my own personal funds to the Ltd company so that the company can operate.
    Do I or the company have to justify that funds transfer in any way?
     
    Posted: Sep 23, 2019 By: johnp1 Member since: Oct 4, 2018
    #3
  4. Mark T Jones

    Mark T Jones UKBF Big Shot Free Member

    5,014 1,968
    You can just transfer money to your business account

    For accounting purposes it will need to be treated either as a loan or equity - but that can be discussed with your accountant at a later date.
     
    Posted: Sep 23, 2019 By: Mark T Jones Member since: Nov 4, 2015
    #4
  5. Victoria_V

    Victoria_V UKBF Regular Free Member

    153 19
    Hello! As a director of a LTD company, you are free to add money from your own savings account to your ltd company bank account without having any corporation tax implications. This money may either be accounted for as share capital introduced in the business(equity) or a loan that you are lending to the company(director’s loan).


    https://www.gov.uk/directors-loans/you-lend-your-company-money


    If you are expecting your company to make profits in the future and want your LTD company to repay the money back to you, a directors loan may be a better way of accounting for the money that you have put into your ltd company.


    Repaying the money back to yourself may be more tax efficient if this money is accounted for as a directors loan compared to extracting the money back via dividends which may have further income tax liabilities.
     
    Posted: Sep 24, 2019 By: Victoria_V Member since: May 29, 2019
    #5
  6. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    13,290 2,496
    You can transfer as much as you want to your company.

    It's always possible that HMRC may ask for details of the source but unless its huge sums it's not very likely.
     
    Posted: Sep 24, 2019 By: MyAccountantOnline Member since: Sep 24, 2008
    #6
Thread Status:
Not open for further replies.