+ Reply to Thread
Posts 1 to 4 of 4
  1. #1

    Nervous Newbie


    Join Date
    Apr 2015
    Posts
    5
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    1

    Default Expense paid by direct debit - what date for expense?

    I've made a bit of an error - I purchased some business insurance from QDOS but chose to pay via direct debit (I'm not sure why in hindsight - I was just starting out).

    I'm paying for it out of my personal account and wish to claim this expense from my limited. I have received an invoice from QDOS for the full amount on 20th February this year (with the mention that it's to be paid as N equal instalments).

    My question is - do I class this as an expense for the full amount on the 20th February and pay myself back the full amount (leaving me to worry about the direct debits) or do I expense each month that I actually pay the instalment as a separate item?

    I'm guessing it's the former but I can't find anything to confirm this. Lesson learned - don't muck around with direct debits for such small amounts!

  2. #2

    Banned


    Join Date
    Jul 2008
    Location
    Atlantis
    Posts
    8,066
    Thanks (Given)
    184
    Thanks (Received)
    117
    Likes (Given)
    222
    Likes (Received)
    531

    Default

    I'd use the invoice date as it's the only documented date to pin it to.

    Mind you I never pay by Direct Debit.

  3. #3

    Double Godlike!

    malvolio's Avatar
    Join Date
    Jul 2005
    Location
    Walking in the garden, dreaming of Olivia...
    Posts
    10,095
    Thanks (Given)
    0
    Thanks (Received)
    181
    Likes (Given)
    4
    Likes (Received)
    638

    Default

    Depends if you re using cash or accrual basis accounting for VAT... For continuing services the VAT point is the invoice date so that is what I would use.

    Doesn't really matter how you pay for it as long as it is paid but paying it personally then raising an expense claim against YourCo and recovering it that way gets your money back and the VAT accounted for (is there VAT on insurance, incidentally? Have a read of this...).

    Or ask QDOS if you can change the payment vehicle, I suspect they won't be that worried who is paying the bills.
    Blog? What blog...?

  4. #4

    Super poster


    Join Date
    Sep 2008
    Posts
    2,414
    Thanks (Given)
    35
    Thanks (Received)
    76
    Likes (Given)
    22
    Likes (Received)
    200

    Default

    Quote Originally Posted by russtifer View Post
    I've made a bit of an error - I purchased some business insurance from QDOS but chose to pay via direct debit (I'm not sure why in hindsight - I was just starting out).

    I'm paying for it out of my personal account and wish to claim this expense from my limited. I have received an invoice from QDOS for the full amount on 20th February this year (with the mention that it's to be paid as N equal instalments).

    My question is - do I class this as an expense for the full amount on the 20th February and pay myself back the full amount (leaving me to worry about the direct debits) or do I expense each month that I actually pay the instalment as a separate item?

    I'm guessing it's the former but I can't find anything to confirm this. Lesson learned - don't muck around with direct debits for such small amounts!
    The former seems to be the simplist way although need to think about cutting across your current and next financial year if you do so.
    ______________________
    Don't get mad...get even...

+ Reply to Thread

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Content Relevant URLs by vBSEO 3.6.0 ©2011, Crawlability, Inc.