A Limited company is a separate legally entity.

• Companies must have a bank account in their own name like a person.
• Thus bills must be in the company name to be allowable for tax.

TIPS:

SAVING FOR CORPORATION TAX & OTHER TAXES

• Savings bank account must also be in the company name.
• Saving for corporation in a personal bank account is treated as earnings thus subject to tax.

MOBILE PHONE

• In order for the company to pay the bill directly, the contract must be in the company name.
• Some phone companies will allow you change the name on the account over the phone.
• Others, you have to start a new contract in the company name. If you are tied in, you can wait or buy yourself out.

 CARS

• Company cars are great when work for someone else. When you run your own company, they can be a disaster.
• If you pay for your car's running costs or the car itself, this it likely to be treated as a company car which could lead to sever tax consequences.
• In most cases it is better to claim mileage, reimbursements from your company like a salesmen.
• Always talk to your accountant prior to undertaking any action.