New company startup investment

[.netdan]

Hi,

Forgive my status as a newbee but:

Say if I start a new private LTD company and I invest say £1000 to get the business up and running, how is that investment shown in the books? and is it taxable at year end?

[Indizine]

Are you using that as share capital introduced or is this in addition?

[Accountsportal]

If its invested from your funds, then its not taxable. You can generally provide these funds either as share capital or a long term loan - best to speak to your accountantas there are advantages/disadvantages to both.

[vanfinance]

Typically this can be classed as a Directors loan, you as the director lending your new company start up money. This money can then be withdrawn from the business later with no tax liability to the company (your personal liability maybe affected)

I would certainly agree with accounts portal in that speaking to a good accountant for
advice is essential to make sure you do it the right way.

[Paul Norman]

There are various ways you can show this, either as a shareholding or directors loan. How best to do this is partly preference and partly tax. The likely performance of your business in its first year will influence the choice.

I strongly advise you to get an accountant's view on this.