Question regarding company/director expenses

[jamesfranklyn]

Hi all at UKBF!

Apologies in advance if this is in the wrong section, or if this is seems like a bit of an obvious question, this is my first post on here.

I recently incorporated a Limited company, and funded all of the set-up costs from my personal finances (e.g. web developer, graphic designer, IT equipment).

Obviously all of these expenses are company expenses, so when my business starts to make money can I pay these funds back to myself as an expense (i.e. not pay any tax as they are company expenses)

Many thanks in advance,
James

 

[Bob]

Bring the costs in to your accounts as a company expense. The double entry is a credit to your director's loan account. You can withdraw the balance when funds permit without any tax consequences

 

[UK Contractor Accountant]

Yes you can. Make a list of all the set up costs paid personally.

If you are going to keep your ltd co accounting records on a recognised accountng software package (zero, sage, kashflow, Freeagent etc) you will need to enter these opening set up costs and create an entry into Director Loan Account.

You can draw the loan back from the company bank account at any time.

 

[faradaykeynes]

How much expense is on webiste? based on materiality it would have different treatment in accounts?

 

[Bob]

How much expense is on webiste? based on materiality it would have different treatment in accounts?

.. but for the sake of completeness, the treatment of the expenditure in the accounts wouldn't affect the credit to your DLA or the ability to withdraw the funds without tax implications for you

 

[faradaykeynes]

Oh yes credit side is fine its the debit needs attention

 

[jamesfranklyn]

Thanks guys, that's cleared things up. It's much appreciated

One question - some of the startup expenses I Incurred from my personal finances before the business was incorporated as a Limited company (2-3 months before). Will this mean I am unable to expense these or will that still be ok?

 

[Bob]

Pre incorporation expenses are fine

 

[jamesfranklyn]

Thanks bbbbb

Sorry for the flood of questions, last one I promise...

When submitting an expense for something that was bought on eBay, for example a laptop. Would I put the supplier as "eBay", or, for example the eBay user e.g. "laptopshopuk" when submitting that expense?

Many thanks,
James

 

[Scalloway]

I would put both to make it clear how you got it.