Reply to: Startup costs

[thunderlizard]

ooh cripes, you are absolutely right. P11d is the one. That's what happens when you let the accountant deal with all the forms!

tl

[Robot]

riffpie, The form is P11d not a P35, mentioned by thunderlizard.

[riffpie]

I did sort of mention it - that's what the P35's about. But no, there should be no tax to pay in either case. That assumes you're going to be lending to the company at 0% interest - if you want to make an opportunistic few percent that's a different kettle of fish. It also assumes that, if you did go down the reclaiming expenses route, you declared everything as 100% business use. Otherwise there'd be benefits in kind to consider.

Thanks a lot. I don't think I'll worry about charging interest, sounds more hassle than it's worth, to be honest. We're not talking large amounts of money, really!

I think we have seen an inordinate amount of getting-the-wrong-end-of-the-stick on this thread. Probably because it's a planning-ahead question, which is quite rare on here!

Lol I think you're right. I had hoped I'd worded it just right, obviously not :-/

Thanks to all who replied, anyway. Sending mind-donuts to everyone, enjoy #minddonuts

[riffpie]

To be fair Riffpie, your question was missing some very key information that we have had to ask or assume.

I know where you're coming from, but in all honesty, and without wishing to be inflammatory, I really don't see how this missing information would affect answers to the question. I do appreciate that you and others are trying to anticipate potential mistakes I may be making, though. I really was just hoping for - and indeed got - a direct answer to the question. I thought the question was specific enough to imply that I knew exactly what to ask. I didn't ask "do I need a ltd company to claim these expenses?" or anything.

[thunderlizard]

since you didn't mention it, there aren't tax implications that make one route better than the other?

I did sort of mention it - that's what the P35's about. But no, there should be no tax to pay in either case. That assumes you're going to be lending to the company at 0% interest - if you want to make an opportunistic few percent that's a different kettle of fish. It also assumes that, if you did go down the reclaiming expenses route, you declared everything as 100% business use. Otherwise there'd be benefits in kind to consider.

I think we have seen an inordinate amount of getting-the-wrong-end-of-the-stick on this thread. Probably because it's a planning-ahead question, which is quite rare on here!

[northernladuk]

What relevance has this to my question? In reality, there isn't a single point from which one moves from having no company bank account, no limited company set up and no contract drawn, to having everything in place, including a physical means with which to interact with, say, an otherwise fully functioning bank account. These things take time to come together, I'm trying to ascertain what other arrangements I can still be making pending this happening. I don't see how making these Columbo-esque ass-pulls is any help. Thanks for looking though, all the same.

To be fair Riffpie, your question was missing some very key information that we have had to ask or assume. You didn't say if it was already set up or not or what position along the process you were. Robot is asking a fair question based on the lack of information you have given. Who is your contract with if you don't have a LTD? Nothing wrong with that question and it is worth you asking. You could have a contract directly with your name in it and if so you are in all sorts of trouble. We have to ask to find out to then give you advice.

It helps because if you have done something wrong or struggling we could point something out you didn't realise.

[riffpie]

My accountant allowed me to do that, the time frame had to be within reason, but claimed expenses up to 2 months prior to start up.

That's interesting to know, thanks very much.

[riffpie]

If no Limited company has been set-up how can you draw up a contract in the compnay name and start trading ?

Robot

What relevance has this to my question? In reality, there isn't a single point from which one moves from having no company bank account, no limited company set up and no contract drawn, to having everything in place, including a physical means with which to interact with, say, an otherwise fully functioning bank account. These things take time to come together, I'm trying to ascertain what other arrangements I can still be making pending this happening. I don't see how making these Columbo-esque ass-pulls is any help. Thanks for looking though, all the same.

[Jeebo72]

I am crap at the accounts side of it and someone please correct me if I am wrong but you cannot claim expenses on the company before it is set up?

My accountant allowed me to do that, the time frame had to be within reason, but claimed expenses up to 2 months prior to start up.

[Robot]

No ltd or bank account set up yet, that'll be paid for by me, obviously!

If no Limited company has been set-up how can you draw up a contract in the compnay name and start trading ?

Robot

[riffpie]

So how can you inject any money in to the directors loan account?

Like I said, I'll be paying for the co. formation personally. Once that, and the bank account are set up, I'll be able to put cash into the account.

I am crap at the accounts side of it and someone please correct me if I am wrong but you cannot claim expenses on the company before it is set up? If you buy equipment you can 'purchase' it off yourself but travelling/accomodation is not straight forward?

Anyone in the know please advise if this is right or wrong.

I'd like this confirmed, too.

[northernladuk]

No ltd or bank account set up yet, that'll be paid for by me, obviously!

So how can you inject any money in to the directors loan account?

I am crap at the accounts side of it and someone please correct me if I am wrong but you cannot claim expenses on the company before it is set up? If you buy equipment you can 'purchase' it off yourself but travelling/accomodation is not straight forward?

Anyone in the know please advise if this is right or wrong.

[riffpie]

No ltd or bank account set up yet, that'll be paid for by me, obviously!

[northernladuk]

Do you have a LTD and a bank set up already or are you talking about covering these costs before the LTD has been setup?

If you already have it in place why not just pay for it on the Co credit card?

[riffpie]

Either is possible. "injecting into director's loan account" is probably the cleanest option, purely because you'll avoid putting stuff on your P35 at the end of the year.

Thanks for that. Pretty straightforward. Presumably, since you didn't mention it, there aren't tax implications that make one route better than the other?