Need some practical advices

gregory

Hello
I am new here. I did foundation AAT and now do Intermadiate.
I am finding the course very easy an I like learn it at all. In April me and my mate run a Limited business(building and etc). Was very hard till Septmeber(I have another job at nights). But now is getting better so I started do some practice with an accounting.
There is my questions. If anyone can help me. If the business has address which is also my mate flat where he lives, can he pay a rent and councill tax from our business account? If we have a mobiles (pay as You go) can we top-up them from business account as well? May I assume that, any time he
takes money out of business account, i.e. pay his rant or councill tax, that money are profit not drawnings? If I have employement with someone else and tax and NIN he pays from my wages and I am a director in our Ltd business I will have to only pay some tax after end of tax year?
If enyone can help me with these questions that I will much appreciate.
Mybe someone know some goods books with more practice advises?
Thank You
Greg

PAMDILL

Mobiles - yes.

Rent and council tax for your mate's flat - are you working from it full time or only using it as an address?
If only using it as an address definitely not. If you are actually working in it then you can claim a portion of heating, light etc. But be aware if it is a council or private let flat you are more than likely in breach of his lease running a business from it, definitely if you are actually carrying out your work there.

Dally1987

Hey,

Just looking at your thread I see your business is at your mates address I have seen people claim there council tax through their business but instead of the rent - they get a allowance called "Use of home as office" which can be a proportion of it. If your phone top ups generally relate to your business then yes this can be put through, some people also claim their home phones,fax or internet, but again if all depends on materialality. eg. If you run an online business you can of course claim back the cost of using the internet :001_smile:

Anything paid for out of the business account that is deemed private will go down as Drawings or can go under Directors Loan Account.

And as for the PAYE side of things I'm not sure if you need to declare the fact that you are a director of your business as you might have to pay yourself a wage throughout the year to make it correct?!

Hope I have helped :thumbup1:

gregory

PAMDILL wrote: »

Mobiles - yes.

Rent and council tax for your mate's flat - are you working from it full time or only using it as an address?
If only using it as an address definitely not. If you are actually working in it then you can claim a portion of heating, light etc. But be aware if it is a council or private let flat you are more than likely in breach of his lease running a business from it, definitely if you are actually carrying out your work there.

He uses it as place to live and keeps his tools. Landlord knows that upon address company is registered. So if he pays i.e. £450/month ret for this flat could he pay it from business account and I could post it to ledger? He doesnt pay electric or gaz or water bills. All is included in monthly rent.
I suggested him to pay council tax from his private account.

Thank You very much to both of people who would answered to my doubts. Please if if anyone can also answers using his experience. I appreciate it. Thank You once again

mark130273

good luck to yourself, glad your getting all that experience. dont tihnk i could of done it after jsut a year of accounts....

but good luck