Ltd Company

dipsy

can anyone explain to me in simple terms :-)

so you set up a ltd company as a contracter

you need to pay for travel say flight to go to a job

you pay for the flight from your personal account as you have yet to build up funds in business account

you log the flight cost /file the receipt,

do you put this cost against director loan (shows this as a positive amount)

Do you then when you get the invoice from the job paid, repay the money to the directors loan (ie your personal account)

Yes I know I need an accountant but only started trading so have registered Ltd company, informed HMRC but obviously I am paying out of personal account currently and could just know how it works without falling foul of any rules.

I will be a employee of the company so will pay Tax NIC

thanks

Aquamania

dipsy wrote: »

can anyone explain to me in simple terms :-)

so you set up a ltd company as a contracter

you need to pay for travel say flight to go to a job

you pay for the flight from your personal account as you have yet to build up funds in business account

you log the flight cost /file the receipt,

do you put this cost against director loan (shows this as a positive amount)

Do you then when you get the invoice from the job paid, repay the money to the directors loan (ie your personal account)

Yes I know I need an accountant but only started trading so have registered Ltd company, informed HMRC but obviously I am paying out of personal account currently and could just know how it works without falling foul of any rules.

I will be a employee of the company so will pay Tax NIC

thanks

Simplest way would be to submit an expense report (including appropriate receipts), and let your employer (your limited company) pay you when it has sufficient funds to do so.

dipsy

thank you

How do I show that in the company accounts?

thanks

motorguy

dipsy wrote: »

thank you

How do I show that in the company accounts?

thanks

Expenses submission - via a spreadsheet for example - at month end.

Company cheque paying you for the expenses.

I do that every month.

dipsy

so simply submit an expense sheet to the company (albeit your own company)

Then show on your accounts as expenses to employee along with their normal Salary etc?

thanks

trailingspouse

We have a spreadsheet provided by our accountant when we first started trading. There are two sheets for every quarter - one is for monies into and out of the business bank account, the other is for cash purchases, or things we've paid for using our personal credit/debit card. This latter sheet essentially documents the money that the business owes to us - I call it 'expenses'. It might be anything from stamps and parking to paying for a hotel if I've forgotten my business debit card.

At the end of the month I tot it all up and send a payment across from the business bank account to the personal bank account - I then record on the spreadsheets the appropriate amounts to show that the money has come out of the business and the amount owed for expenses is now zero. I do this at the same time as RTI and our mileage claims.

paddyrg

dipsy wrote: »

so simply submit an expense sheet to the company (albeit your own company)

Then show on your accounts as expenses to employee along with their normal Salary etc?

thanks

More or less yes - the ownership of the shares is completely independent of the expenses for employees in the line of business.

motorguy

dipsy wrote: »

so simply submit an expense sheet to the company (albeit your own company)

Then show on your accounts as expenses to employee along with their normal Salary etc?

thanks

Yes, i write a seperate cheque for my expenses and one for my pay. I write on the cheque stub what its for - Expenses Jan 17, Salary Jan 17, etc.

I have a spreadsheet for the year with tabs for each month for expenses. I just keep that updated.

motorguy

paddyrg wrote: »

More or less yes - the ownership of the shares is completely independent of the expenses for employees in the line of business.

Who mentioned shares?

dipsy

motorguy wrote: »

Who mentioned shares?

I guess this refers to paying yourself dividends?