Dormant Company query

[Donstu71]

Hi all,

I bought some business equipment through personal account whilst my company was dormant. It was set up via Companies House but since then I never got the ball rolling as it were with my Marketing etc so didn't see the need at that time to set up a business bank account.

I decided, as I spotted a bargain here and there to buy quite a lot of equipment that I would need for the Company. Once I start trading which I'm pretty sure it will be soon as I'm currently about to start a marketing campaign, will I be able to declare these sales through the books and re-claim personal money spent, or is that not possible?. Also, I was lead to believe that if I am not currently trading, then I don't need to notify HMRC, only when I start trading then I need to let them know within 3 months, is this right?

Stu

 

[Becky]

There is relief available as long as the expenditure qualifies - I am unsure from your post whether the expenditure is revenue or capital, so both bits of guidance are below.

Revenue: BIM46351 and BIM46355

Capital: CA23179

Essentially if the expenditure qualifies for relief, it is treated as incurred on the first day of trade.

However this applies to the legal entity which incurred the expenditure. I would double check this with your adviser - perhaps your company could purchase the goods from you at market value.

 

[virtualaccounts]

If the items are capital items then it is possible that the company can buy these from you. However I would urge you get some specific advice on your situation

Thanks

Vicky