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Start Up Costs Reimbursement without taking a wage

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Hi all, 

This may be a rather daft question...

I've recently formed a Limited Company for selling products online and while setting up spent a lot of money on samples and then the bulk order of goods etc. I don't plan on taking any money out of the company as profit for some time but I do need to pay some of the other stuff back. Is it as simple as reimbursing myself from the company accountant? (Obviously all valid expenses with receipts) Or is it more complicated with personal tax etc? 
 

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By the_drookit_dug
27th Jul 2020 01:23

Pretty much, although make sure you meticulously record the expenses in the company's books. You will be one of the company's creditors until you make the reimbursement and clear off the balance. Beware though that if you start drawing out more than is due to you - which you're allowed to do - then there are tax implications...

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By SXGuy
27th Jul 2020 08:39

Did you pay for these items after the company was incorporated or before?

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By DT90
27th Jul 2020 09:29

It was a bit of both as there was no sales just yet. But all within the last few months.

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By SXGuy
27th Jul 2020 09:43

Regardless of sales, the date of incorporation is key i believe.

If you had costs, which you paid for, prior to the company being formed, then it isnt a company expense, because the company never existed at that point.
Therefore, you cant reimburse yourself for those costs.

Whether or not, the company can purchase those items from you now though is another matter, perhaps someone else can comment more regarding that.

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