Ltd company with money

[shadowx]

Ok let's say I earnt 100% profit $2000 in LTD company.

Is it a problem if I take $200 of that $2000 for any expenses? Do I need to keep receipt of it and so on?

 

[Mr D]

Company expenses or your expenses?

 

[shadowx]

My expenses

 

[Scalloway]

Yes you should get receipts. The payments should be recorded in the Director's Loan Account in your accounts.

 

[KAC]

Do you have an accountant?

If you are a director you can take the money as salary, expenses incurred in respect of the company's business or as a director's loan.

If you are a shareholder, you may be able to take as a dividend although dividends normally need to be paid to all shareholders.

All of these options have tax consequences. Hence the first question above

Always assuming that currency in $ is a slip of the keyboard

 

[STDFR33]

Always assuming that currency in $ is a slip of the keyboard

They slipped three times

 

[Newchodge]

YOU don't earn 100% profit, $2000 in a Ltd company.

The limited company earns profit. You may earn a salary as an employee of the ltd company, you may receive dividends, based on the company's profit, as a shareholder of the limited company.

If the company incurs allowable expenses in carrying out its business, the company can offset those expenses against it's income to reach the profit figure. Generally receipts would be needed to evidence those expenses.

If you personally incur expenses that are not expenses of the business, you are responsible for paying them. The company can lend you the money to pay them, if you are a director, through a director's loan. There may be tax implications.

You need to speak to an accountant.