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Post Info TOPIC: Limited company putting invoices though books on personal name


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Limited company putting invoices though books on personal name
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Is this allowed?

Say I run a limited company and my rent and lease of the property is in my personal name and I put the invoices though the books as that.

Will the accountant who finalizes the books at the end of the year; will the inland revenue as well except this?

Thanks



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I think that you are losing here the understanding of what a limited company is.

Think of it as a child. A director has a fiduciary duty of care for the company in the same way as a parent has a duty of care for their child. The companies money is its own. It is not the directors. They have to have a good reason for taking the companies money. Either to purchase things for the company. To pay salaries or to pay dividends. It is not simply a piggy bank.

There is also something called a directors loan account where a director is able to loan money from the company that they must repay before the period end.

That works both ways of course. Whilst the companies money does not belong to the director. Neither does the directors money belong to the company. This is known as the veil of incorporation.

If a director uses the companies money as their own then they are effectively breaking down the veil of incorporation where one's own money is protected because the company is a seperate legal entity to its owners. (See Salomon vs Salomon(1897)).

Now, what do you mean by the rent and lease of the property? What property? What does the property have to do with the company? What sort of business is it (what does it do?). For example, one needs to consider whether it may be affected by IR35 legislation.




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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.



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it a licensed premises

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