Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Payback of Personal Expenditure

Options
  • 07-11-2005 8:04pm
    #1
    ButtermilkJack
    Registered Users Posts: 632 ✭✭✭


    I used my personal credit card to pay for certain business set-up expenses (eg: companies registration fees, website hosting/email etc..) and was wondering what the deal is with paying that back. Can I just write a check to myself for whatever the amounts are? Or is there an indirect way of doing this? Or do I even get the money back at all? Does it have to be done before the end of the tax year?

    Cheers?


Comments

  • Options
    #2
    BrianD
    Closed Accounts Posts: 7,221 ✭✭✭BrianD


    Easy way would be to create an expense form and submit them as expenses. They are legitmate business expenses. You should allows ask for a VAT receipt (preferably in your company name) and this means that you should be able claw back VAT whenyour company makes returns to the revenue.


  • Options
    #3
    antoinolachtnai
    Registered Users Posts: 9,787 ✭✭✭antoinolachtnai


    there is a rule about being able to tax-deduct the costs of establishing the business as of the date of the registration, I think.

    The amounts you spent are effectively the capital you invested in the business. There are a number of ways of returning this money to yourself. I think it would be normal to treat them as a director's loan.

    There's no particular need to get the money out before the end of the tax year. On the other hand, it might be beneficial, because treating part of your drawings from the firm as repayment of capital might result in you paying less tax this year.

    You really do need to talk to the accountant to make sure you are happy that you have this straight. It might be helpful to look at a basic book on accounting too.


  • Options
    #4
    Kinetic^
    Closed Accounts Posts: 13,249 ✭✭✭✭Kinetic^


    Set it up as a directors loan.

    It'll be a creditor in your accounts, just don't end up turning into a debtor as it wll raise tax implications.


  • Options
    #5
    BrianD
    Closed Accounts Posts: 7,221 ✭✭✭BrianD


    Yes but these are straightforward invoices e,g web hosting that probably don't amount to huge amounts of money. Few hundred euro? I'm sure the chap wants to put it back in his pocket rather than waiting till the end of the year and getting tangled up in forms. Expense it!


  • Options
    #6
    ButtermilkJack
    Registered Users Posts: 632 ✭✭✭ButtermilkJack


    BrianD wrote:
    Yes but these are straightforward invoices e,g web hosting that probably don't amount to huge amounts of money. Few hundred euro? I'm sure the chap wants to put it back in his pocket rather than waiting till the end of the year and getting tangled up in forms. Expense it!
    Exactly, total is only about €300 so really just looking for my cash back in my pocket (and also to reduce earnings for tax purposes! It's better that these transactions show up as expenses/purchases. They are all legit.

    Oh, btw, I should've mentioned I'm only a sole trader so a director's loan is a no-go. I really thought it would be as easy as writing a cheque!

    Eg;
    February '05, I pay €215.00 with my personal visa for web hosting.
    March '05, start trading.
    March '05, I open a new business bank a/c and get a chequebook. I write a cheque for €215.00 to me! and if anyone asks, the 215.00 is for web hosting (which I have full-vat receipt for) so all is ok! No?

    (I know its now Nov'05 not March but you know what I mean... :) )


  • Advertisement
Advertisement