Directors expenses-set up loan or payback with dispensation?

Jo Legg
Jo Legg Settling In NicelyRegistered Posts: 20
Hi

I have a Ltd Co client that has two directors, both have incurred pre set up expenses that I have recorded on Sage in two directors current accounts and continue to incur expenses,when they use personal bank card for the odd business expenditure. I'm not sure whether to set up two loans so the directors can pay themselves back each month or apply for dispensation so that expenses can be reimbursed that way?

HELP!!!!!!!

Comments

  • clegganator
    clegganator Well-Known Registered Posts: 184
    Two parts

    1. For the pre trading expenditure , I don't know the nominal code, but I would of said that is effectively capital introduced into the company.

    2. The expenses they incur and get repaid set up a control account or subaccount for each director so you can see who spends the most on what or has unclaimed expenses. Then make a BACS payment to clear the account on a monthly basis.
  • Jo Legg
    Jo Legg Settling In Nicely Registered Posts: 20
    Thanks so 1. Would be a a loan to company and 2. Can be covered by dispensation?
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