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Where Taxpayers and Advisers Meet

Daft question on ltd co expenses

andyhasit
Posts:1
Joined:Sat Jan 20, 2018 10:56 pm
Daft question on ltd co expenses

Postby andyhasit » Sat Jan 20, 2018 11:14 pm

Hi,

I run a limited company (one person, which is me) and have a daft question that my accountants aren't answering.

So in my annual limited company accounts, there is some use of home as office space, some mileage and also the odd purchase made with my private money but that are for business use. I have provided these to my accountants for the past 3-4 years, who have included it in the annual statements.

But those sums have never left my company account. Surely I should be paying that money back into my private account in the same way that you get your non-standard travel expenses paid when you're an employee? My accountants have never instructed me to do that, or flagged up the fact I haven't done it to date.

It feels like a really stupid question but I can't get an answer to it, all I find is 20 articles telling me what I can and can't claim, not how that claim works!

- Do I just make a payment out from my limited company account to my private account?
- Do I put this in my self assessment? If so, under what?
- Can I back date it a few years?

Also, it strikes me as odd that my accountants never mentioned this, and I have to question whether that sum is being taken into account in the annual tax calculations. I.e. if in my first year I had £200 in such expenses, but it never goes out, could it be that this is accidentally counted as profit in the following year?

Any enlightenment on the matter would be greatly appreciated.

Kind regards

Andrew

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Daft question on ltd co expenses

Postby bd6759 » Sun Jan 21, 2018 12:50 am

It called the Directors Loan Account. This ledger account records all of the transactions between yourself and the company. The expenses will be credited to this account along with your income and dividends. The debit entries will be all of the money you have taken from the company.

The balance of this account will be shown in the balance sheet: either as a liability if the company owes you money, or as a debtor if you have taken out more than has been paid in.


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