Covering business start up costs

[cmc68]

Morning,

My wife and I are in the throws of setting up a ltd company. The company doesn't officially exist yet but aperwork is filed awaiting formal notification and then we will be going to the bank to set up an account.

I want to get going with some set up tasks such as the web site etc. Can any costs incurred now be put against the company once everything is in place?

If so are there any things that can/can't and any considerations to how we go about it i.e. What we put by way of customer details on things such as domain or hosting registration.

Thanks.

Chris

[Soir]

Yes, you can give the company a loan and are fine having invoices predations the company start up date.

Keep invoices/receipts

Good luck with the venture!

[Eric Mc]

It's quite common for directors to have to pay some of the initial costs of a new limited company out of their own pocket. There are legitimate costs and are properly recorded as costs of the company. Therefore, you should make sure that you keep all records of this expenditure (receipts, invoices etc) and how it was paid.

Because you will have funded these costs personally, the company, in effect, owes you the money back. Therefore, as soon as the company is in a position to pay you back, it can.

[cmc68]

Thanks both.

Do invoices need to be in the company name?

So in effect is it part of a director's loan?

We will be putting some family money in at first to cover cash flow and the purchase of an asset, which I also assume to be a directors loan.

Is this all lumped together?

And do we draw this back from the business profits before corporation tax and ahead of paying any dividends?

Or would we indeed balance taking dividends up to lower tax rates for us as directors, with drawing loan funds back for any more money we want to take from the business in a given year?

Thanks.

Chris