New Ltd company start up questions

D

delboy25

Guest
Hi,
I have just set up an Ltd company as I have been an IT contractor for about 4 years. There are 3 directors of the company but basically only 2 will be the doing the work and billing customers. There other director owns the office premises and provided a loan to start up.
Have a few questions:

Can the conversion of the once garage into an office be classed as an expense? Note the garage was built many years ago but the conversion has cost about €14,000 to bring it up to a usable state.
I have hired an accountant but he seems sketchy on this and keeps saying that it is more capital than expense, what exactly does he mean by this as regards expensing? Can I still deduct it from Gross income before paying tax on the remaining profit?

The reason I am asking is that I have used my personal savings and a loan from the owner of the property to complete its renovation. They are now asking that I setup a repayment system and I am wondering what is the best way to go about this? Should I simply just setup a direct debit from the business account to their personal account?

They also will be charging rent on the premises. Will they be liable for CGT if they ever sell the premises and is there a threshold on which they dont pay tax on the rent??

The other expenses I have incurred are 2 vehicles, 2 laptops and 1 PC, Printer/Scanner/Photocopier. These are exclusively used in the business but were purchased slightly before the company was formed. Are these still business expenses and should I allow for depreciation when including them?

The last question is setting up as an Employer/employee for PAYE/PRSI, which I have registered for.
I have not received notice back from the revenue yet on this but what forms will I need to complete once I do?

Your help is much appreciated
 
There other director owns the office premises and provided a loan to start up.
Can the conversion of the once garage into an office be classed as an expense? Note the garage was built many years ago but the conversion has cost about €14,000 to bring it up to a usable state.
Click to expand...
Is this an actual office premises or a private residence which you are using the converted garage as an office? Did the conversion happen before or after you set up the company?


AFAIK, you cannot deduct for any expenses incurred before the LTD company was formed. Even if the conversion was done after the company was formed the person who ownes the premisis might be liable for some sort of tax due to the fact that someone else paid for improvements on their property for which they will benefit if it is sold.

They also will be charging rent on the premises. Will they be liable for CGT if they ever sell the premises and is there a threshold on which they dont pay tax on the rent??
Click to expand...
Yes they will, on the portion of the property that was rented out, even if it is their primary residence.

The other expenses I have incurred are 2 vehicles, 2 laptops and 1 PC, Printer/Scanner/Photocopier. These are exclusively used in the business but were purchased slightly before the company was formed. Are these still business expenses and should I allow for depreciation when including them?
Click to expand...
Your company can buy them off you for an agreeable value and you can depreciate them each year....but check with an accountant for exact details.
 
it is a private residence and the owner is a director of the company also.
they provided the loan for the start up of the business.
the conversion started before the company was registered with the CRO, by this I mean the cleanout of the building began - which I did myself. The conversion was solely to facilitate an office. Will this affect how it is declared.

Do you have any information as regards paying rent? will the landlord have to pay tax on all of it?

thanks again
 
there is no threshold for rental income. the landlord will have to work out his profit/loss on his rental income for the year (on an calender basis) to be on the safe side the landlord could engage an accountant and if they price around they should get a good price but teh calculation of a profit/loss is not very complicated and they should be able to do this themselves. they coudl contact their local tax office to see how they should go about this!!
 
You must log in or register to reply here.
Back
Top