Director new business advice

JJH1969

I have a director who has a new business idea which he wishes to fund from his existing Ltd Company. He is paying for advice on how to set up the new arrangement which I have invoiced him for personally as it can be deducted in his first CAP as pre-set up costs for the new business. He wishes to pay from the exisiting Ltd Company. I havent billed the Ltd Co as the new business is unconnected and the advice is for the Director personally and not the trading Co. Any advice?
Thanks

reader

JJH1969 wrote: »

I have a director who has a new business idea which he wishes to fund from his existing Ltd Company. He is paying for advice on how to set up the new arrangement which I have invoiced him for personally as it can be deducted in his first CAP as pre-set up costs for the new business. He wishes to pay from the exisiting Ltd Company. I havent billed the Ltd Co as the new business is unconnected and the advice is for the Director personally and not the trading Co. Any advice?
Thanks

If he does pay for ltd company 2's invoice using limited company 1's bank account you could post the bank payment for the limited company 2's invoice to his directors loan.

In ltd company 2's accounts, you could bring in the cost of the invoice via his loan account (although if the invoice is for formation costs it would have to be disallowed in the tax comp).

Speaking of tax comps, the 2 companies may be associated for tax purposes.

reader

JJH1969 wrote: »

I have a director who has a new business idea which he wishes to fund from his existing Ltd Company. He is paying for advice on how to set up the new arrangement which I have invoiced him for personally as it can be deducted in his first CAP as pre-set up costs for the new business. He wishes to pay from the exisiting Ltd Company. I havent billed the Ltd Co as the new business is unconnected and the advice is for the Director personally and not the trading Co. Any advice?
Thanks

Alternatively you could setup an intercompany loan account, i.e:

In limited company 1:
DR Intercompany loan (asset) & CR Bank

In limited company 2:
DR Professional fees (expense) & CR Intercompany loan (creditor)

This maybe a better way of dealing with the transaction rather than everything going through the dla.

However the above loan would have to be disclosed by way of a related party note in the accounts.

denis86

I work for Complygate, a company based in Birmingham, UK, that offers HR Software and Background Screening solutions to Small and Medium Enterprises here in the UK.

I'm not here to advertise, but to offer as much insight and help as I can regarding the Online Human Resource Management solutions industry.

First things first, what exactly is a HR Software, or HR System?

It can also be called HRMS (Human Resource Management System/Software). A HRMS is an online platform that supports employers and HR personnel with all HR-related tasks and processes. Going from talent acquisition to retirement, and touching everything in between:

Pre-employment screening,
Onboarding,
Employee management,
Time shift and schedule management,
Assets and Expense management,
Redundancies
Leave and holiday management
A HR System basically integrates all these functions within a single online platform. HR managers, employers and employees can access the portal (according to the permissions granted to them) and perform the requested tasks.

It automates many processes, such as scheduling for example. Some HR Softwares are powered by AI and Machine Learning, which means that they can keep track of the employees availability and preferences, and build and schedule the shifts, which will only require to be approved by the managers.

Each company is different, and the price range is diverse. If your company (whether you are the owner or employee) is in a point where every process takes forever because the files are all kept in different folders, computers, by different people... a HR Software might be a tool to consider, and that could reduce many administration costs (plus a ton of time that is usually lost just on locating and organising documents).

Apart from Complygate HR, there are a few more HR Software that I would recommend: Personio, Breathe HR and People HR.

Are there any HR Software that your company has used/uses that you would recommend? Why is it?
I can see that there a lot of websites providing HR services and what is the difference?

Thanks,