How to share an expense between two Ltd Companies?

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Hi all,

My partner and I produce work together, and we both have our own limited companies. Often we have joint expenses - such as accomodation expenses for research trips.

What's the best way to split these costs? Should one of our companies pay for it and then invoice half of it to the other?

We're not VAT registered yet, as I imagine that would complicate things somewhat...

Thanks so much,
Z

Replies (5)

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By johngroganjga
25th May 2020 11:07

Whatever suits you best.

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By DJKL
25th May 2020 12:16

Presume by your using the word "partner"you are not indicating that a partnership exists between the two limited companies?

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Replying to DJKL:
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By Zak Gorham
25th May 2020 13:00

No, there's no legal partnership between the companies - but we're work partners, so we work on the same projects together.

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By Truthsayer
25th May 2020 18:17

I recommend you ask your accountants, then split the fee in the way they suggest.

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By Justin Bryant
26th May 2020 09:26

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

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