Starting up but using my own money

ergot2005

Using my own money to buy stock...

Can I put these receipts into the business books?

I believe I can claim back as expense but the company has no money yet so it cannot give me my expenses back I little confused what the best thing to do

What happens at the very start of a company being formed? Should I be putting x amount of money into the bank account ?? So it has money ?

00ec25

how can you possibly be asking such naive questions when you appear to be in control of a Limited company?

you appear to have forgotten that you are not the company.
How can the company buy stock if it has no money?
how can the company sell stock items if it does not own them because it has not purchased them?

go see an accountant before you get into a mess
you need to read up on Director's Loan Accounts, yes you can loan money to the company so it can purchase stock. That is what a director's loan account is all about. No you cannot claim as expenses the purchase of stock that is then sold by the company because that is a director loan, not a director's "expense"

you also need to read up on the principle of "working capital" as it sounds like you haven't a clue what you are doing and your company could end up trading whilst insolvent, which is illegal, and has personal repercussions for your future as its director.

ergot2005

Thank you for your supportive and oh so positive bashing

I have not yet become incorporated just trying to understand where the money comes from to start with. I've had no issue fronting the money but just want to keep things in order in the future so thought I would ask in good time..... sorry

00ec25 wrote: »

how can you possibly be asking such naive questions when you appear to be in control of a Limited company?

you appear to have forgotten that you are not the company.
How can the company buy stock if it has no money?
how can the company sell stock items if it does not own them because it has not purchased them?

go see an accountant before you get into a mess
you need to read up on Director's Loan Accounts, yes you can loan money to the company so it can purchase stock. That is what a director's loan account is all about. No you cannot claim as expenses the purchase of stock that is then sold by the company because that is a director loan, not a director's "expense"

you also need to read up on the principle of "working capital" as it sounds like you haven't a clue what you are doing and your company could end up trading whilst insolvent, which is illegal, and has personal repercussions for your future as its director.

00ec25

then go see an accountant and get advice that is TAILORED to YOUR specific circumstances...

tacpot12

If the company has not yet been formed then, as part of the formation, you can invest in the company by depositing cash in the company's bank account in exchange for shares in the company.

If you go down the director's loan route, the repayment of the loan is counted as your personal income and needs to be declared on your self-assessment tax form, along with the dividends and salary you receive from the company.

If you share your business plan with your accountant they will recommend how to get money into the company so that it can begin trading.

tacpot12

00ec25 wrote: »

utter tosh

Well, it was mostly tosh!

I did make a mistake when saying the repayments needed to be declared as income, this is wrong as 00ec25 said, any interest needs to be declared as income. Sorry for the mistake.