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Company Credit Card or not.

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    #11
    Originally posted by JamJarST View Post
    There is one advantage that I think a lot of us miss. Getting used to using a company credit/debit card helps you realise that there is company money and personal money and they are not the same thing. Your company's money is not your money! A lot of contractors fail to understand that the company is an entity in its own right and that you can't just spend the money in it at will.
    I agree many people forget the difference but I don't think buying on personal cards and expensing it back makes this difference clear. You are still transfering the ownership via the expenses system back in to your company so doesn't help with this differentiation.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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      #12
      What kind of credit limit can you get on a company credit card? I have a credit card in the company name but the limit is so low that I could never use it without the backup of my personal credit card, this makes it pretty useless as it would be a mess having the first £X expenses on the company credit card and the rest on a personal one.

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        #13
        Originally posted by dynamicsaxcontractor View Post
        What kind of credit limit can you get on a company credit card? I have a credit card in the company name but the limit is so low that I could never use it without the backup of my personal credit card, this makes it pretty useless as it would be a mess having the first £X expenses on the company credit card and the rest on a personal one.
        Eh? You have no money in the Comapny account? Why would you need credit? If that is the state of your companies finances I would think which card to use is the least of your worries.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

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          #14
          Originally posted by northernladuk View Post
          Eh? You have no money in the Comapny account? Why would you need credit? If that is the state of your companies finances I would think which card to use is the least of your worries.
          Of course I have money in the company account, tons of it actually.... But why would I use my company debit card for my expenses? To start it would look messy in the account and I wouldn't get any interest on my money if I kept it in my company current account instead of a high interest (oh well 1%) account.

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            #15
            Originally posted by dynamicsaxcontractor View Post
            Of course I have money in the company account, tons of it actually.... But why would I use my company debit card for my expenses? To start it would look messy in the account and I wouldn't get any interest on my money if I kept it in my company current account instead of a high interest (oh well 1%) account.
            Messy???

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              #16
              Originally posted by Clare@InTouch View Post
              They may be thinking that it's easier because there's less to declare on the P11D - but then a dispensation could alleviate that, assuming they are all genuine business expenses.
              Why would there be any less to declare on the P11D ?

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                #17
                Unless something's changed recently, there is no difference between a company card and a personal one when it comes to what expenses you have to declare/claim on your P11D/tax return. A purchase on a company card is treated the same way as one on your own. At least that's what my accountant told me, years ago when I used to have a company card.

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                  #18
                  Originally posted by JamJarST View Post
                  Messy???
                  Yes as the important payments to my accound and the direct debits out of it will be drowned in expense lines. One payment out for the expenses per month is far better than 10-100 transactions per month.

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                    #19
                    If it's company credit card being used for business purposes then it's doesn't need to go on a P11D.......

                    Your employee uses a card you’ve provided to make a business purchase. They have your prior authority for the purchase and when making the purchase they make it clear that they are acting on behalf of your business. For a purchase to be clearly on your business’s behalf, both the following must apply:
                    • your employee must explain in advance that the purchase is on your behalf
                    • the supplier must accept that the purchase is on your behalf


                    What to report, what to pay
                    Unless one of the exceptions referred to below applies, you have:

                    no reporting requirements
                    no tax or NICs to pay

                    HM Revenue & Customs: Credit, debit and charge cards

                    The exceptions it refers to are when the employee doesn't have prior permission, and when it's not clearly on behalf of the company. As long as the card is used only for business then there's nothing to report.
                    ContractorUK Best Forum Adviser 2013

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                      #20
                      Originally posted by dynamicsaxcontractor View Post
                      Yes as the important payments to my accound and the direct debits out of it will be drowned in expense lines. One payment out for the expenses per month is far better than 10-100 transactions per month.
                      Seriously? Its a business bank account for a business it is exactly how most businesses have done things with any problems!

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