LTD Company apportionment
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Hi,
I just have a quick question. I started Technician level this year and we are not doing DFS until Jan.
We set up a ltd company in our house just this year, only been trading for 2 months from 1 of our rooms. I know that I have to apportion rent, gas, electricity etc to the company accounts. I just wondered if the only thing I have to do with that is to apportion it by how many rooms we have eg 1/5, or do you have to take room size into account aswell. Also at the moment it is being paid out of our personal account, how do we transfer this portion from the business account, even though at the moment no money is coming into the business, we are waiting on payment. Hope this makes sense.
Any info, anyone has would be greatly received. Thanks.
I just have a quick question. I started Technician level this year and we are not doing DFS until Jan.
We set up a ltd company in our house just this year, only been trading for 2 months from 1 of our rooms. I know that I have to apportion rent, gas, electricity etc to the company accounts. I just wondered if the only thing I have to do with that is to apportion it by how many rooms we have eg 1/5, or do you have to take room size into account aswell. Also at the moment it is being paid out of our personal account, how do we transfer this portion from the business account, even though at the moment no money is coming into the business, we are waiting on payment. Hope this makes sense.
Any info, anyone has would be greatly received. Thanks.
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Comments
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Re:LTD Company apportionment
Continue paying the bills from your personal account.
Charge the company an agreed rate to cover all those costs. Don't reimburse yourself that money and make these entries:-
Dr: P&L - use of home as office
Cr: B/S - director's account
Regards
Dean0 -
Re:LTD Company apportionment
Thanks for that Dean. I thought it would be something like that, but it's nice to have confirmation on what I'm doing.
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