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Invoices between two owned limited companies

What are the rules and guidelines when invoicing between 2 limited companies that you own?

Hi everyone, I am not sure if this question has been answered before. I need some advice on the following: I own 3 limited companies in the UK. I would like to emit an invoice from company 2 to company 1 to support a bank transfer from company 1 to company 2. Would this transfer be classified  as a loan or an expense? The big question is therefore, what are the legal rules and guidelines when transferign money between companies, what is classified as a loan and expense?


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24th Feb 2018 20:29

A loan is simply allowing someone to have temporary use of your money. An expense is a payment you make in exchange for services received. The key difference is that with the latter your money never comes back.

These are not legal rules and guidelines. These are common sense explanations of what English words mean, which should be obvious to any native speaker of that language.

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By Ruddles
24th Feb 2018 20:57

If you own 3 limited companies then you should have at least 1 accountant - to whom your question should have been addressed.

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24th Feb 2018 22:18

If you don’t know what it’s for how the hell is anyone else meant to know?

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By nrw
27th Feb 2018 10:37


I would like to emit an invoice

Definitely ensure that your emissions comply with the standards (emitting invoices can be fraught with problems). Recent emissions scandals have cost large companies a lot of money.

I'd phone up your accountant and ask him for his opinion on your emissions - and please let us know his response.

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