Start up costs - Limited Company

Chris_Smith146

Hi,

My friend has just started a limited company, but she purchased many of the things she needed to start the company up before registering the company at companies house. As the purchases are in theory before the limited company was formed, can they still be accounted for in the books (as assets/expenses)? She also purchased them form her personal bank account before setting up a business bank account - if this makes any difference also.

I am still a student at the moment, so am unqualified/unable to help her properly, but at least I could tell her the answer to this hopefully!

Thanks!
Chris Smith

Neillaw

Hi Chris
You can claim back the pre Ltd company expenses as being introduced into the business as they will used for the business. This also includes the items which have been put through her personal bank account, I would get her to put together an expense form with all the payments she made together with the receipts and then post them into the Ltd company accounts.
Hope this helps.
Neil

haiyen90hn

Hi Neillaw,

I'm in the same situation and have the same question as Chris. Should I tell my friend to gather all the expenses, then pay the total amount from Ltd company bank account to her personal bank account?

Many thanks
Yen