Hi, I have just formed a company and have paid incorporation and other expenses, now i am going to charge the expenses with credit to the directors loan account, is it fine? and can i debit preliminary expenses account with incorporation expenses ?
I also got two mobile phones on contract in Company's name which will be used by the directors for official work, can i charge the upfront payment for these mobiles to the fixed assets account ? and can i charge the monthly payments of mobile bills to company's expenses account?
1. Yes fine to charge the directors loan account with incorporation fee and other expenses. From a tax viewpoint the incorporation fee isnt allowed.
2. Depends what the upfront payments are for the phone whether would capitalise or expense. Expect they arent huge so I would be inclined just to expense them.
3. Yes can charge the monthly payments to the company's expense account. A director/exployee can get a mobile phone provided by the company without any taxable benefit being charged.
