Accountants – ltd co expenses question

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  • This topic has 6 replies, 5 voices, and was last updated 2 months ago by  rone.
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  • Accountants – ltd co expenses question
  • Premier Icon oldtennisshoes
    Subscriber

    I contract through my own limited company. To date, I’ve used my company credit card for expenses – travel, subsistence, stationery – all legitimate expenses.

    Is there any reason I can’t use a personal credit card and then just claim the expenses back – obviously I’ll record and receipt everything as before, but just put one expense claim in at the end of the month/when my invoice is paid.

    I understand the risk about me temporarily taking on the debt, but I’m not worried about that.

    The 2 reasons for down this are:

    1. Fewer transactions to reconcile; and

    2. I can use my cashback credit card – obviously I’ll record the cash back as income in my personal tax return.

    Whaddya think

    5thElefant
    Member

    It’s perfectly normal to use your personal card and expense it back to the company.

    Premier Icon rugbydick
    Subscriber

    Yep, I’m a Ltd company contractor (for the last 8 years). I’ve never had a company credit card, so just pay for things myself and then claim the expenses back.

    The expenses just go in a different box on your personal income tax return, to show that they’re not income.

    IHN
    Member

    Yep, it’s fine, it’s what I did. But I eventually got and used a company card, as the personal card cashback wasn’t worth the expenses-claiming paperwork faff.

    Premier Icon madhouse
    Subscriber

    No problem doing it that way at all, as has been mentioned before they’re not income so don’t forget to put them in a different box or you’ll get taxed on them.

    Premier Icon oldtennisshoes
    Subscriber

    Thanks all

    Premier Icon rone
    Subscriber

    This is what a director’s loan account is for.

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