getting money from account

**oracleslave** · 17 October 2007, 16:14

Originally posted by reddeagle View Post

Any tips..

Never chase busses or women, you always get left behind.

HTH.

**dude69** · 17 October 2007, 16:23

Originally posted by reddeagle View Post

Well my company bank balance has finally money in it.
I emailed my accountant to ask whats the process of getting money out from the account..

He advised me on claiming for expenses etc.
Do i just add up over the last month, the cost of the train and tube to and from work and is that my expensis. Lets say that comes to 100 pounds. do i just write my self a cheque for 100 pounds and keep the receipts?

Also he said

"I would also suggest that you draw sufficient additional funds as you deem necessary to enable you to meet all your personal commitments. "

how can i do this? surely i can treat my company account like my personal account and randomly start taking cash from it

Any tips..

Bit confused mate, you're paying him to answer these questions, send him this email instead.

**TheFaQQer** · 17 October 2007, 16:28

Originally posted by reddeagle View Post

how can i do this? surely i can treat my company account like my personal account and randomly start taking cash from it

I'll hope that's a typo and should read "Surely I can't treat..."

I have no idea what kind of accountant you are using, but he sounds a bit of a cowboy. You can take out expenses by taking the money out. You can take a salary, that you pay PAYE on. You can take dividends out, but need to declare these and pay all shareholders.

You could take a loan from the company, but there is an annual limit on this.

I'm not aware of any other ways to take money out of the company legitimately. Sounds like you need to ask your accountant - although if this is the advice you are getting, I'd ditch them pretty quick and move onto someone else.

**xoggoth** · 17 October 2007, 16:40

As long as you account for it properly as one of the above and pay any necessary tax there are no particular rules as to when and how much you make a withdrawal. Simplifies the accounts if you do not make lots of small withdrawals though, I prefer to use it for VATtable company and major transactions only. You can keep a petty cash account to cover minor expenses.

**vhadiant** · 17 October 2007, 21:42

I'd change accountant mate.

Basically you have money into the company bank account. Minus that to your salary, *legitimate* expenses and other pre-tax outgoings. Whatever left is the profit before tax. Apply company tax, whatever left from this one is the company profit after tax.

You take this profit out as dividend which will be taxed again, but this is your personal tax nothing to do with your company. That's generally the way to do it. There are of course other way to get money out from the company account to your personal account.

**max** · 17 October 2007, 23:04

Originally posted by reddeagle View Post

Any tips..

Take it all....only leave money to keep the business running.

End of year accounts will sort out the tax...

**NotAllThere** · 18 October 2007, 05:55

Originally posted by max View Post

Take it all....only leave money to keep the business running.

End of year accounts will sort out the tax...

Nearly. Take it all... only leave money to keep the business running, pay your VAT liability and your PAYE/NI/Corp Tax liabilities.

Otherwise, you may find you've a large tax bill, and you've no money left to pay it, cos you've spent it all.

**conqurer** · 18 October 2007, 06:48

But do you not need to back up the annual returns with your bank statement at year end? If you take out money as and when you like is it not going to make it very hard to justify why you made these payments to yourself?

Regards.

Originally posted by NotAllThere View Post

Nearly. Take it all... only leave money to keep the business running, pay your VAT liability and your PAYE/NI/Corp Tax liabilities.

Otherwise, you may find you've a large tax bill, and you've no money left to pay it, cos you've spent it all.

**vhadiant** · 18 October 2007, 06:56

Originally posted by conqurer View Post

But do you not need to back up the annual returns with your bank statement at year end? If you take out money as and when you like is it not going to make it very hard to justify why you made these payments to yourself?

Regards.

I'd say they mean taking it out as dividend. All will be recorded. The company money is not your money until you take it out as divi.

getting money from account