Trade accounts

[jonny7_2002]

Forgive me if this is a stupid question!!

As a limited company does anyone know if there are any implications on setting up a trade account with Topps Tiles and buying my wooden floor from them though the company?

1. Do I get any Tax relief?
2. Will the tax man shoot me for any reason?
3. Apart from the 25% discount on the trade account would it work out any cheaper than buying it as a 'normal person'?

Thanks for any replies.

Jonny Moron

[Ardesco]

You company is an separate legal entity to you. What is your company going to do with a wooden floor?

[Moscow Mule]

You company is an separate legal entity to you. What is your company going to do with a wooden floor?

Sell it to Johnny at a small profit?

If you're a company trading in IT consultancy, is there anything stopping you from buying & selling goods?

Also, I expect there's nothing in your agreement with Topps Tiles that prevents you from paying with a personal card - the transaction therefore never has to go across the company books.

[~Craig~]

open the trade account in your co.'s name but pay in cash from your own pocket. That way you get the 25% discount but there is nothing going through your business account.

[ratewhore]

If your wooden floor is wholly and exclusively for business use then you should be OK...

[miffy]

You company is an separate legal entity to you. What is your company going to do with a wooden floor?

Put the filing cabinet on it!

Honestly. Wooden floor through the limited, whatever next.

[moorfield]

open the trade account in your co.'s name but pay in cash from your own pocket. That way you get the 25% discount but there is nothing going through your business account.

Ditto.

I'm currently upgrading central heating and kitting out 2 new bathrooms at home, so I setup a trade account in the ltdco name with a heating, plumbing etc. wholesaler.

Not used it yet but the idea being that I can source all the bits I need (eg new boiler) from there at lower cost than I could on the high street, and fortunately my builder is quite happy to go along with this too rather than creaming off a margin for himself.


Edit: If the suppliers do insist on payment via ltdco cheque / card etc. and its a smallish sum I guess one option you have is to put that transaction against your directors loan account and just pay the money back into ltdco from your personal account.

[Dow Jones]

To all those replies to Johny Moron

Are you f'n serious people?

[Moscow Mule]

Are you f'n serious people?

Deadly

[EternalOptimist]

you wooden want to touch this with a bargepole


geddit ? wooden,wouldn't



igmc