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Payment received privately before LTD formed

Should/Can i transfer funds received as individual to my LTD company?

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Hello.

I've started providing services as my side job [i have full time employment] and before i registered my LTD and got my bank account sorted, i was paid by 2 of my customers. and i invoiced them and they paid me as an individual. However, 2 weeks after that, i have finally formed LTD company.
So my questions are following:

1. Can i or should i log those invoices under my company name and transfer payment from my personal account into my business account?

2. or do i leave those as they are as they were paid to an individual and then pay income tax?

Issue is i'm in high bracket from my main job [i pay 40% any amount i earn now], thus paying 40% from earned amount is something ideally i would avoid and instead, if i could log it for tax purposes as an earning by my company, i'm happy to pay all related Taxes but as a business.

On related topic:

when invoiced, i have provided them with my details including my National insurance number.

I'm the director of the company and main share holder.
 

Replies (13)

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Stepurhan
By stepurhan
12th Oct 2021 12:50

Why did you start providing services before setting up a limited company? Why did you take so long after starting to provide services to set up a limited company? Why are you choosing to operate through a limited company at all? (The last one I can guess an answer to, but it may not actually be a good idea depending on your other plans)

You have already made potentially expensive mistakes. Continuing to DIY and rely on free advice on the internet (when you have no idea who is answering) is not a wise idea. As a 40% taxpayer already, paid-for bespoke advice is a must if you are not going to make things worse.

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By David Ex
12th Oct 2021 13:12

I didn't spot the words "please" or "I'd be grateful ..." so I won't be responding to your questions. It's bad enough asking for free professional advice but not even having common courtesy really is poor.

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Replying to David Ex:
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By TimSmith777
12th Oct 2021 14:04

You don't need to respond if you are offended by me not putting "thanks". OMG, another snowflake. THANKS for unhelpful reply

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Replying to TimSmith777:
Psycho
By Wilson Philips
12th Oct 2021 14:24

I doubt that anyone here is offended by your lack of politeness. I think you'll find that most accountants are pretty thick-skinned given some of the clients that we have to deal with.

But one doesn't have to be a snowflake to understand, and employ, good manners (she says, being one of the ruder members on this forum ;¬) ). Good luck with your business if you behave toward your customers in such fashion.

Thanks (4)
Replying to TimSmith777:
Stepurhan
By stepurhan
12th Oct 2021 14:24

No-one needs to respond. This is a FREE forum so people can, within the site rules, responds or not however they wish.

So, if you want helpful replies, a little politeness would go a long way. After all, the only person with a vested interest in getting a correct answer to your queries is you.

Thanks (5)
Replying to TimSmith777:
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By Leywood
12th Oct 2021 16:11

You dont need to respond yourself if you dont like the answer.

But you were rude/bad mannered in the first place.

Then ruder still.

Accountingweb - for Accountants/Tax professionals exchanging information, not members of the public seeking freebie answers. David is an Accountant.

Tax planning - key is in the word. You chose not to plan, so live with the consequences.

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Replying to Leywood:
Psycho
By Wilson Philips
12th Oct 2021 16:18

How does it go?

"Fail to plan, plan to ..."

Thanks (1)
Replying to TimSmith777:
RLI
By lionofludesch
12th Oct 2021 19:19

TimSmith777 wrote:

You don't need to respond if you are offended by me not putting "thanks".

Ah, fair enough. I won't then.

Though I did wonder how you were going to get the money out of the company without paying that higher rate tax.

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By bettybobbymeggie
12th Oct 2021 13:57

OP - welcome to AccountingWeb!

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By legerman
12th Oct 2021 17:06

Your answer is here:

"and i invoiced them and they paid me as an individual"

Incidentally, depending on the sums involved, it could have actually cost you more to put it through the Ltd.

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Replying to legerman:
ALISK
By atleastisoundknowledgable...
12th Oct 2021 17:35

legerman wrote:

Incidentally, depending on the sums involved, it could have actually cost you more to put it through the Ltd.

Especially with your fee level ;)

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By Alexerg
24th Oct 2021 03:39

TimSmith777 wrote:

On related topic:

when invoiced, i have provided them with my details including my National insurance number.


Are you serious?

For what reason on earth are you putting your NINO on an invoice???

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Replying to Alexerg:
RLI
By lionofludesch
24th Oct 2021 03:43

Alexerg wrote:

TimSmith777 wrote:

On related topic:

when invoiced, i have provided them with my details including my National insurance number.

Are you serious?

For what reason on earth are you putting your NINO on an invoice???

Happen he's in the construction industry.

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