Ltd Company Income

B

busyman

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I setup a Ltd. company awhile back for an online website. Following this, i setup a Google Adsense account in my own name (not company) where i can advertise google ads on the website and make money. I have made approx €2000 this year. The money made on the website does not go through company and arrives directly to my own personal bank account monthly (approx 170).

My company NArd is coming up shortly and i am wondering should i declare this money through the company or declare it as additional income in a general tax return once yearly and pay taxes on the €2000 this way.

I should have setup a sole trader account first and i will be delisting the company after the company NArd and going the sole trader route.
 
As the income is paid to you and is unconnected with the company you should declare it under self-assessment Income Tax, particularly if this income will be continuous. ( small one off items can sometimes be handled by PAYE districts )

If you propose delisting the company this is even more important as to do so (voluntary strike off ) you need a nil balance sheet. Transactions in the company would create difficulties in doing that.
 
Thanks for reply. That sounds ok to me. Just so i am reading this correctly. Even though the website has the limited company name on same etc. and the revenue is coming directly to me in my own name by way of the website, i am still ok to declare this income in a self assessment route?
 
Whoa...hang on, I read the original post to mean you set up a website and a company but that none of the income went through the company but to you personally and the company is essentially unused. You now say the actual website has the company name all over it ? Are you taking online orders through the use of a Ltd company but the funds are being channelled directly to you ? Has the company traded, taken orders and provided services for which it ( the company) has or ought to have been paid ?
 
I formed the company to make the website credible etc. with relevant contact details etc.

The money generated is from advertising only as the company preforms no services and no online orders but this account was made in my own name.
 
busyman said:
I formed the company to make the website credible etc. with relevant contact details etc.

The money generated is from advertising only as the company preforms no services and no online orders but this account was made in my own name.
Click to expand...

If I read it correctly you are advertising the business as a limited company which does exist. You have relevant details of that company on the website and potential advertisers would therefore believe they are dealing with that company but you are personally taking the proceeds to your own account. Is that correct?
 
Yes, the website details has a business name registered under the LTD company. When i signed up to Google Adsense Advertising though, i gave them my own personal details and bank account.

If this is wrong, how can i correct or can i declare under the self assessment.

Any advice is much appreciated.
 
If you do not intend to use the company and if it has not been beneficially entitled to any of the income to date then you could :-

1) Register for self-assessment under Income Tax yourself ( form TR1) and file all income & expenses under that system since you are the recipient.
2) If there is a business name registered to the company then the company could file to cease using that business name and you could file to commence using that business name. ( see business names registration at the CRO )
3) If the company has had no transactions and is not expected to and is of no use to you, you could go for voluntary strike off. ( see www.cro.ie )
 
Many thanks Graham,

I'm a novice at this sort of thing and am rightly confusesd. I just want to be sure i am going about it the right way and have found out from reading online that a LTD company was not the way i should have gone first day.

I do not intend to use the company and want to use the self assessment filings once yearly but how can i claim that the company to date has not been beneficially entitled to any of the income to date before i ditch the LTD company? (As the adverts are located on the website)
 
If the company should not be on the website and if the company has not generated any transactions at all then perhaps you should remove the company from the website to avoid giving incorrect impression to advertisers and instead give contact details as your sole-trader business with an appropriately registered business name if trading under a name not exactly your own. You could then deregister & voluntary strike off the company and trade as the sole-trater filing appropriately.

I would follow this by suggesting that you discuss all the above with your financial/legal advisors to ensure that you are making the correct decisions.
 
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