LTD co... putting money in...

[LDN]

I have a dormant LTD co. that I want to set live in the next month or so. I'd like to put 20k into the new LTD co. bank account to start the ball rolling. What's the process? Can I simply transfer it in ASAP - I understand that I can't then draw it back out again (unless paperwork states on transfer in - that it's a loan that's repayable upon demand (or some such thing)).

Whilst the cogs only just start turning... I'd like to give the LTD co. a regular income and would like to funnel money from another LTD co. and also, a sole trader account of mine, to it. Is there any issue with this? I am simply wanting to beef up the new LTD co. with a small but regular income from other ventures I'm involved with. This would be under the guise of the new LTD co. taking care of marketing for the other two established co.'s. This wouldn't be a lie but I want to check that it wouldn't be considered 'dodgy' by the powers that be.

'Speak to an accountant' will be the advice - and I have tried but mine is away for another fortnight. Any pointers very much appreciated.

[blindswelledrat]

You can put it in and take it out at will.
It is just how it is recorded that makes a difference.

So if you transferred in £20k from XYZ Ltd, this would sit on the books as a loan from XYZ Ltd and there would be an equivalent entry in the XYZ Ltd accounts.
At any point you can transfer all or some of the money back from Newco to XYZ Ltd as a loan repayment.

[Jockman]

You're 'new' company would not be trading? Would it essentially be an investment company?

Beware, differing tax rules.

[madmover]

Jockman said:

You're 'new' company would not be trading? Would it essentially be an investment company?

Beware, differing tax rules.

Good point!
Hope you're well Phil.

[Jockman]

madmover said:

Jockman said:

You're 'new' company would not be trading? Would it essentially be an investment company?

Beware, differing tax rules.

Good point!
Hope you're well Phil.

Hi Andy - doing well. All the best mate

[DSLiverpool]

I've put a tickle into the new venture it's classed as a directors loan. It wasn't enough to get an office with a window though !

[LDN]

DSLiverpool said:

I've put a tickle into the new venture it's classed as a directors loan. It wasn't enough to get an office with a window though !

Haha; this time next year Rodders. Yes, a directors loan it looks like. I also want to funnel a regular amount of money from another LTd co I have to this new one for marketing services. It's all legit but I always feel like someone is going to pick up they are both my co.s and that there could be some issue with this. Should all be ok it seems.

[Jockman]

If services are being supplied will this impinge upon transfer pricing?

So long as ownership is the same will all companies be grouped together for Vat and Corp Tax purposes?