Paying personal money into business account to pay for business expense

Stitch123 · 23 April 2016 at 9:33PM

Not sure if my title makes sense!

I have recently started a Ltd company as I work as an agency nurse in various talking therapy settings.

I also wish to undertake some private practice. There is a course I wish to do which will qualify me in clinical hypnotherapy. The course cost is £2300. My ltd company balance is currently £0 as its so new.

I was intending to pay the £2300 out of personal savings however have thought about whether I could pay £2300 to my business as a directors loan and then pay for the course through that?

I have an appointment with an accountant (to get more advice about the whole business) next week but I have to make this payment on Monday. Any advice would be appreciated.

Thanks.

paddyrg · 23 April 2016 at 9:56PM

Yes, pretty much.

unforeseen · 23 April 2016 at 10:21PM

If this is a new skill rather than refreshing or updating a current skill then it is not an allowable business expense

http://www.hmrc.gov.uk/manuals/bimmanual/BIM35660.htm

antrobus · 24 April 2016 at 7:20AM

Stitch123 wrote: »

...I have an appointment with an accountant (to get more advice about the whole business) next week but I have to make this payment on Monday. Any advice would be appreciated....

Take your accountant's advice.

The cost of this course may or may not be an allowable business expenses, but how you pay for it is irrelevant from that point of you. It's not going to be more allowable because it was paid out of the company bank account, and it's not going to be less allowable becuase it was paid out of your private account.

So there is no urgency.

Paying personal money into business account to pay for business expense

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free