Reclaiming Tax

cybermoney

I set up a LTD last Summer.

Is it possible for me to reclaim the TAX which I spent setting up the business? I spent two years setting everything up, however a lot of the work - I don't have receipts for.

Also, I will soon be receiving two thousands pounds from a successful law suit - direct into my business account. Do I need to declare this and pay taxes on it?

And finally, how often should I be declaring my business earnings?

Any help would be greatly appreciated. Thank You

fengirl_2

Only expenses incurred by the limited company can be shown in the company's accounts and this would reduce the amount of tax paid by the company - the company wouldnt get any money from anywhere. If you have loaned the company money to set up, then you can just withdraw this, but your accountant would probably advise that without receipts, HMRC would have a field day with the company accounts.
The law suit money - depends on who is entitled to receive the money - you or the company and what it was for. You should not pay personal money into the company account.
You need to get accounts prepared for the business annually and the company needs to self assess. You pay tax under PAYE on all your drawings and also self assess.
I really think you need professional advice.

cybermoney

"Only expenses incurred by the limited company can be shown in the company's accounts and this would reduce the amount of tax paid by the company - the company wouldnt get any money from anywhere. If you have loaned the company money to set up, then you can just withdraw this, but your accountant would probably advise that without receipts, HMRC would have a field day with the company accounts."

When you say withdraw, do you mean take out money which the company has made?

"You need to get accounts prepared for the business annually and the company needs to self assess. You pay tax under PAYE on all your drawings and also self assess."

Is there a set date for this? And do you know of a link where I can do this online?

Thank You

TM1976

cybermoney wrote: »

"Only expenses incurred by the limited company can be shown in the company's accounts and this would reduce the amount of tax paid by the company - the company wouldnt get any money from anywhere. If you have loaned the company money to set up, then you can just withdraw this, but your accountant would probably advise that without receipts, HMRC would have a field day with the company accounts."

When you say withdraw, do you mean take out money which the company has made?

"You need to get accounts prepared for the business annually and the company needs to self assess. You pay tax under PAYE on all your drawings and also self assess."

Is there a set date for this? And do you know of a link where I can do this online?

Thank You

You generally would prepare accounts annually (1 year's trading) both for companies house and for corporation tax.

Based on your posts here I would seriously recommend you get an accountant.

cybermoney

The company would not be earning enough to qualify for corp tax.

TM1976

cybermoney wrote: »

Is it possible for me to reclaim the TAX which I spent setting up the business? I spent two years setting everything up, however a lot of the work - I don't have receipts for.

I assumed this what you meant here, if you are talking about VAT, then no if you were not VAT registered.

Some of this expenditure could possibly be set off against future corporation tax liabilities, however you will need advice from an accountant on what you can include and how to capture the unreceipted expenditure.

As a (UK) Ltd co. director you have a statutory responsibility to keep adequate accounting records and submit accounts regardless of whether you make a profit or a loss.