AIA query

AIA query

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New limited company, the two directors purchased laptops for the company upon incorporation which I have put to Directors accounts.  Do they qualify for  AIA given that they weren't actually purchased through the company bank account, although at least one of the invoices was made out to the company (I haven't seen the other yet) and the directors will be seeking repayment on their accounts asap.  They have large credit balances.

I have tried to find answer on HMRC website but still unsure

Many thanks for any advice.

Replies (4)

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By johngroganjga
10th Apr 2014 10:28

It is irrelevant whose bank

It is irrelevant whose bank account the payments to the supplier came out of.  What matters is whether the purchases were made for the company or not - and you say they were.  Therefore the purchase is eligible for AIA.

If the directors had bought laptops for themselves, and then subsequently sold them second hand to the company, the answer would be different.

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Replying to Beancounting:
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By ES
10th Apr 2014 12:45

Thanks

Thank you.  I hoped that was the case.  I got bogged down thinking about gifts and related party transactions... your swift response is much appreciated. 

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By tonycourt
10th Apr 2014 12:11

Director's account

Am I right to assume you have posted the cost of the laptops as a credit to the director's loan account?

 

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Replying to lionofludesch:
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By ES
10th Apr 2014 12:42

Directors account

Hi.

Yes, DR fixed assets, CR directors accounts.

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