New Startup LTD co - add cash

[rustyhole]

Hi,

I wondered if anyone could help me as my accountant is currently out of the country.

I have incorporated a new LTD company and I am the only Director. The company will be buying the assets of another company for £10,000.

Everything is prepared for the transfer of assets for this weekend, however my bank are dragging their heels regarding setting up my business account and it will not be ready in time.

Is there any way that I can introduce money to the business without it going through the business bank account? I was thinking along the lines paying for the other business assets by bankers draft from my personal account and submitting an expenses claim to my new ltd compnay for the full amount.....would this work?


Many thanks

 

[elaine@cheapaccounting]

All you need to do is debit assets or whatever you are buying, credit directors loan.

Assuming that you have already discussed the purchase with your accountant and got professional advice on it, I would suggest paying for it from your personal funds and letting the accountant do the entries as above later.

The loan from you to the business can be repaid at a later date with any tax implications.

 

[MyAccountantOnline]

From what you've said in your post I can see no reason why you cant pay for the assets on behalf of the company.

 

[DeanCo]

Is there any way that I can introduce money to the business without it going through the business bank account? I was thinking along the lines paying for the other business assets by bankers draft from my personal account and submitting an expenses claim to my new ltd compnay for the full amount.....would this work?

Ideally, you should keep your business and personal records seperate, as using a personal bank account for business would mean that your entire personal affairs will be scrutinised under any HMRC investigation. However, under your circumstances it would be acceptable as a oneoff.

 

[mcarey]

I know its always good to keep business expenses and personal expenses separate, but from what you have said and the position you are in, you can purchase the item from your personal account and credit directors loan account.