New LTD Company - I am Director and I want to lodge my personal savings to company bank a/c

hi all

I have just setup a LTD company, I am Director, my wife Secretary. I have 15k euro in cash from personal savings that I want to lodge to the business bank account so it can start to purchase some assets for trade. As I understand it, the company would then owe me back this money and is recorded on the company's Directors Loan account? Can I receive back this money from the company tax free, and is it simply a matter of drawing up a simple loan agreement between me and the company, and then have the company pay me back periodically once the company starts to generate revenue?

Thanks
B

buckfast said:

hi all

I have just setup a LTD company, I am Director, my wife Secretary. I have 15k euro in cash from personal savings that I want to lodge to the business bank account so it can start to purchase some assets for trade. As I understand it, the company would then owe me back this money and is recorded on the company's Directors Loan account?

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Correct.

buckfast said:

Can I receive back this money from the company tax free,

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Yes.

buckfast said:

and is it simply a matter of drawing up a simple loan agreement between me and the company, and then have the company pay me back periodically once the company starts to generate revenue?

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No need for a loan agreement. Just make sure you keep a clear record of the various transactions.

Thanks a million T, that's really helpful and looks like it's a lot more straightforward than I initially thought. I assume if I am to charge interest on the loan, then it might get a little more complicated, and secondly, if I am to transfer ownership of a personal asset to the company then I the company will also need to pay me back cash to the market value of that asset too?

buckfast said:

Thanks a million T, that's really helpful and looks like it's a lot more straightforward than I initially thought. I assume if I am to charge interest on the loan, then it might get a little more complicated, and secondly, if I am to transfer ownership of a personal asset to the company then I the company will also need to pay me back cash to the market value of that asset too?

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You're very welcome. Don't bother with charging interest on the loan - you'll only be creating a tax liability for yourself on the interest income.

If you transfer ownership of a personal asset to the company, you can either have the company repay you for its market value, or simply leave a balance repayable to you on the company accounts, which can either be repaid to you (possibly in lieu of taxable salary) or debited against cash withdrawals etc in due course.

That's what makes AAM stand out from the rest.

A cleanly asked question, and a very clear answer