Advise please

[tonibat]

Limted company just set up. Need to pay for a training course. No money in bank account yet. Do I:

1) Have it billed to the company and transfer in money and treat it as a directors loan?
This can be paid back later with no tax implications cannot it not?


2) Pay it personally and claim it on expenses when enough money is in the bank account?

Both ways should be tax deductible ?

Many thanks

[NotAllThere]

Option 1) for sure. That's what the Director's loan account is for.

Option 2) won't be tax deductable.

( See the discussion on books and the difference between allowable expenses for a business, and allowable expenses for an employee ).

[Platypus]

Personally I'd go with (1) as that eliminates any possibility (no matter how remote) that it might be considered non-claimable via employee expenses

EDIT: NotAllThere's answer better than mine!

[tonibat]

Thanks guys

Why won't option 2 be tax deductible?

[ASB]

Thanks guys

Why won't option 2 be tax deductible?

Read the thread you were pointed to.

[tonibat]

oops sorry!

Thanks

[NotAllThere]

I don't mind repeating the relevant part.

An employment expense has to be wholly exclusively and necessarily in the performance of the duties of the employment.

A business expense has to be wholly and exclusively for the purpose of the trade.

[tonibat]

thanks

[ASB]

thanks

If you do your books yourself make sure you get the accounting entries right, if you use an accountant make sure he knows you have lent the comp[any 2k (or whatever it is) so the s/he can get them right.