Questions on director loan refunds from revenue

ivorystraws said:
You would imagine that most practicing accountants are fairly busy.... so you would imagine that since the time the thread was posted, there has been no practicing accountants on this forum giving advice on others threads? I doubt that as there's lots of helpful advice posted on this forum all the time by qualified professionals.

You would imagine that no practicing accountants "dishing out" advice on no other threads on this forum? Is that what you view this forum as... a place that people go to get professional advice "dished out" for free? That maybe the case for some people but I find it a valuable community of like-minded people to discuss, share and comment on pinons and questions. Some people do just want to help you know.
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I said I imagined that most GOOD practising accountants are fairly busy.
This forum is many things, and there's no doubt that plenty of good (and bad) professional advice is dispensed here. (My posting history speaks for itself, and I've also gladly helped lots of people via PM. Your posting history shows you only ever contribute to threads you've started... so you can't exactly hold yourself out as one of those people who just want to help!)

ivorystraws said:
I don't just "have to" do anything until someone else feels inclined to act.... it's simple, I'll go to another forum and ask the same question and contact accountants over the phone and get the answer in writing. It's easy and that simple. I'll post the answer back here on this thread when I have it in writing and verified that it's correct.
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That first sentence sums up for me the difficulty of trying to deal with you - I'm pretty sure you mean "I don't just have to do nothing", which is the opposite of what you said. Your OP on this thread was fairly impenetrable - I was half wondering if maybe I was being dense, but thankfully Smeharg didn't really get the jist of it either. Maybe that's why it took a while for you to get responses.

Anyway, now that it's clear what the question is, and having had time to look at it, the issue and the answers are very simple. Relief is allowed under Section 82 TCA '97 for expenses incurred in the 3 years prior to commencement of a trade. Expenses that will be allowed as pre-trading expenses, will be expenses that would be allowable expenses in the normal course if the trade had commenced when they were incurred. ([broken link removed])

The relief operates by treating the pre-trading expenses as if they were expenses incurred on the date the trade commenced. Section 82 specifically states that the expenditure must be incurred by the same "person" (applies equally to a company or individual) who sets up and commences the trade. The easiest way for you to get the benefit of this expenditure is to commence the trade as a sole trader, and subsequently incorporate it. The moral of the story remains the same - go and get professional advice.
 
DB74 said:
I wouldn't be 100% sure that pre-trading expenses incurred prior to the formation of a limited company can be paid back to someone who incurred those expenses personally. The expenses have to be incurred by the limited company in the first place for them to be allowable, which is obviously not the case if the company hasn't even been formed yet.
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i just had a quick search there on askaboutmoney and this was the accounting treatment proposed as well at the time
http://www.askaboutmoney.com/showthread.php?t=69587

i cannot think of why it would not be permitted under IE GAAP

as for claiming these expenses as an allowable expense against CT - again I do not see an issue as long as they fill the requirements of being allowable
 
WindUp said:
i just had a quick search there on askaboutmoney and this was the accounting treatment proposed as well at the time
http://www.askaboutmoney.com/showthread.php?t=69587

i cannot think of why it would not be permitted under IE GAAP

as for claiming these expenses as an allowable expense against CT - again I do not see an issue as long as they fill the requirements of being allowable
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Well they'll only be allowable if allowed under S.82 as pre-trading expenses.
As I stated above, in order to be allowable under S.82 they would have to have been incurred by the same "person" who commences the trade.
Since the company which the OP intends will conduct the trade doesn't actually exist yet, it can't incur anything.
Hence the OP is snookered, and commencing as a sole trader is the only viable means of validly ensuring relief.
 
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