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Can costs before incorporation go on DLA?

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Hi

I'm the director of a small limited company. 

Can monies I have paid personally before the company was incorporated in respect of services and equipment for the company be reimbursed through the Director's Loan Account? (UK)

Thanks

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By johngroganjga
24th May 2020 14:01

If they are fit and proper costs for the company to bear, remembering that it can’t have bought anything before it existed, yes of course.

Your accountant will surely guide you on the fit and proper point.

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Replying to johngroganjga:
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By starmix
24th May 2020 14:15

Thanks johngroganja,

I don't have an accountant yet, rightly or wrongly. I just want to try and keep the bookkeeping correct as much as possible as I go along.

These are mainly relating to virtual office services; I wanted to have the virtual office address in place before incorporating so that the company could be registered under this address.

I guess the company didn't exist at that point? But to my mind it seems more appropriate for the company to bear these costs, so I'm just not sure.

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By Accountant A
15th Jun 2020 20:18

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Replying to Accountant A:
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By starmix
24th May 2020 21:33

Fair point :)

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By Accountant A
15th Jun 2020 20:18

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By Justin Bryant
26th May 2020 10:51

Bizarrely, if this was an investment company, it seems that per the FTT he would have to have a board meeting for it to be deductible as mgt expenses. See: http://financeandtax.decisions.tribunals.gov.uk/judgmentfiles/j11641/TC0...

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