Directors Loan Account Logging Payments from Director's Personal Bank Account

Hi Tash!

Loving the username! Thanks for your message. 

I presume for each payment I can record it as a transaction and add my receipts etc and maybe that that is what you mean as standard? Can a journal be used for dates in the past?

Thanks and Kind Regards, 

Beanie

Edit: I've just realised, I've ended up with two accounts on the forum but I am also poundawebsite!

Yes that correct.  You could, for example, do a monthly journal for any payments you make from your personal account.  Whatever works for you.

Thank you for you comment about my user name :-). Love my Business name :)

I've just got the VAT number overnight from HMRC in an online message (when I logged into the .gov.uk section) - not showing on public VAT database which I thought was a bit odd (it might make us look like we are fiddling the system!) -> i've just gone to QB to set up VAT. The earliest the VAT registration could apply was from the date of incorporation of the business. However, purchases were made before this (Director's loan stuff) for the start-up so i'm just wondering how to deal with this within QB and whether I have to set "start calculating VAT" from the same date as HMRC? The only entries so far are Director's loan related. I hoped to get my Director's loan back (interest free to the business) and claim the VAT back on purchases (that will stay with the business) largely to feed myself and my brother who I care for. 

Thanks and Kind Regards, 

Beanie. 

Hi poundawebsite Any purchases that you'd like to claim for before you became VAT registered can be accounted for by making adjustments to the open VAT period.

Hi John and Tash, 

A few questions - Tash - I was reading what you were saying about "whatever the expense code relates to" - this made me feel a bit weak - some examples: 

1. A payment for an extension for my website

2. Facebook ads

3. Domains for my website and other website bits and pieces straight from my Supplier

4. A payment to the Information Commissioners office

5. A payment to the formation agent who registered the business 

- this hopefully gives some idea of the things that have come out of my personal bank account that are business related expenses (not exhaustive) and contribute towards a Director's loan (or would that be loans??) 

Popping them in the journal (I haven't ventured into that yet on QB) sounds a bit like writing something in a diary - unless you check the diary, the entry does not do anything- I guess this journal is a bit different? 

Sorry if I sound a bit pedantic and certainly no intention to cause offence :)

John - What does making adjustments to the VAT period mean - sorry! 

Thanks and Kind Regards, 

Beanie. 

Hi onerealbeanie I presume what Tash is referring to in relation to the expense codes is the chart of accounts, sometimes referred to as nominal codes. You can simply create these expense accounts/codes to relate to whatever you have purchased.

In relation to making adjustments: within the taxes section there is your VAT periods, when you select prepare return there are boxes 1-9 and any transactions that you create that have VAT allocated to them will populate in the relevant boxes. To account for the historic transaction that don't fall within the first VAT you have to account for you can select the adjust option next to the box that the transaction would populate in. E.g. if you are accounting for an expense with a 20% VAT code it would normally populate in box 4 and 7, as it is prior to your first VAT period it won't so you would adjust box 1 and 7 accordingly.