buy now-pay-later

[Wanderer]

I own my own limited company, but haven’t use it yet (this is because I’m currently working on permanent basic). I wondered if there is any company out there that offers buy-now-pay later goods for us IT professionals.

As lje says, your company can't just go and buy stuff if it has no money and it's unlikely that someone will extend credit to a limited company with no trading history or income unless you have a very good business plan and you can convince the bank to lend your company money (no offense intended but it's probably unlikely in your situation).

However, if you are setting up a new business then you can use your own money to buy what you need to get the business up and running (IT equipment, office equipment, materials etc) and then claim these as "startup costs" or "pre-trading expenses" once your company starts trading and earning money. You would pay for all this out of your own pocket initially and once your company gets up and running, you can offset the costs against company profits.

So, if your company spends 1,000 pounds, you can deduct this from the company profits and not pay corporation tax on it, saving about 20% of the purchase cost. If you get VAT registered then you can also claim back the VAT which is another 17.5% of the cost. There are rules though, the goods have to be exclusively for company use. Buying yourself a new 50 inch TV might get you in trouble unless you can show that it's for installation in an office that you are working in, for example. However, buying a new PC shouldn't be such a problem.

If you register for flat rate VAT then you can't claim back the VAT so it might be worth registering for VAT, claiming back the VAT from purchases and then going on the flat rate scheme (FRS).

That's the basic outline of it - you should really get professional advice from a proper accountant now.

[northernladuk]

My English is gooder than yours.

Come to Yorkshire and I will learn you to speak proper like what I does!

[SofaKingdom]

Is English is your second language? and you are looking for something that will let you buy through your limited company but pay for it later. A company which you admit isn't currently trading.

Is it me or does it look like we are advising you on something that is going to be dodgy?

My English is gooder than yours.

[northernladuk]

Hello boys,
I own my own limited company, but haven’t use it yet (this is because I’m currently working on permanent basic). I wondered if there is any company out there that offers buy-now-pay later goods for us IT professionals.
I’m with Barclays incase it matters.

Is English is your second language? and you are looking for something that will let you buy through your limited company but pay for it later. A company which you admit isn't currently trading.

Is it me or does it look like we are advising you on something that is going to be dodgy?

I am cautious about this due to the fact in your previous posts you talk about moving alot and have a post titled 'Is honesty the best policy' Linky . Makes me wonder thats all.

[lje]

We're not all boys on here you know...

I'm not sure that I understand what you're asking but I think you are querying whether you can get credit from companies for buying goods through your limited company which has never traded. Somehow I doubt that you'd be able to do this. How would the company pay for the goods? How would you account for them in your annual return?

[namnadasht]

Hello boys,
I own my own limited company, but haven’t use it yet (this is because I’m currently working on permanent basic). I wondered if there is any company out there that offers buy-now-pay later goods for us IT professionals.
I’m with Barclays incase it matters.