BUYING EQUIPMENT WHEN THE BUSINESS DOES NOT HAVE THE MONEY.

When your business is low on funds and you need to buy some equipment, you may be tempted to pay for it yourself; DON'T.

It is more tax efficient for you to lend or give the money to the business so the business can pay; especially with limited companies.

TRAPS:

• The danger is, if you use another means of payment, I wont know about it, therefore we may miss out on tax saving and or VAT claims if vat registered.
• For limited companies, HMRC can deny the tax relief if the company did not pay for it, hence lend it to the company first; 'Director's Loan Account'.

TIP: If you use another means of payment, tell me about it at the time, email me so I can print it for the file and supply evidence with an invoice & credit card statement. I will put such emails and documents on your file so they are staring me in the face when I start your taxes.