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    rrp
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    Default Company Credit Card or not.

    Currently I don't have a company credit card for my business bank account, so I pay expenses (flights, hotels etc) on my own CC then simply claim the expense from my company bank account and pay off the card.

    Is there any advantage/disadvantage to paying expenses from a company credit card as opposed to paid from director? My accountants said they would prefer if I paid via company CC.

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    What a muppet!

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    It's up to you really, I am not sure why your accountant is pushing you towards getting a company card.

    Advantage of a company card - less admin for you to do paying the expenses.

    Disadvantage of a company card - you don't get any rewards points on your personal card (if they still do that sort of thing over there). That's all I can think of.

    I always used a company card, it meant that I did not have to document any expense claims.

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    Some things in Moderation

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    I much prefer a company credit card. I used to use a company debit card before I realised that it didn't give my company the protection of a CC.

    I only use the debit card these days for paying HMRC (since there's no protection from them...).

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    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. Otherwise it's just cleaner to keep everything company based within the company, rather than giving HMRC a reason to request your personal bank statements/card statements if they want to check your claims.

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    Credit Cards give protection, however business credit cards have high rates of interest attached. A better option is to use a pre-paid business credit card. You never actually go into debt on this but have all the protection associated with a credit card.

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    Quote Originally Posted by cojak View Post
    I much prefer a company credit card. I used to use a company debit card before I realised that it didn't give my company the protection of a CC.

    I only use the debit card these days for paying HMRC (since there's no protection from them...).
    Quote Originally Posted by Jason View Post
    Credit Cards give protection, however business credit cards have high rates of interest attached. A better option is to use a pre-paid business credit card. You never actually go into debt on this but have all the protection associated with a credit card.
    I'm not actually sure about this. This is in the consumer credit act.. but the name kind of gives away that it may not include businesses.

    Just found this:

    BusinessLink: Buyers' terms and conditions and unfair contract terms

    Protection under the Consumer Credit Act
    If you operate as a sole trader - within a partnership or as an unincorporated association - you are also protected by the Consumer Credit Act, under which you count as an 'individual'. The Act extends consumer credit regulation to business lending where the amount of the credit or hire agreement is 25,000 or less.

    The Act does not apply to limited companies, limited liability partnerships or individuals of 'high net worth' (as long as this is agreed in writing beforehand). To find out about the Consumer Credit Act, see our guide on consumer credit

    In general, credit agreements between businesses - ie where credit is provided to limited companies - do not fall under the scope of the regulations. You should seek legal advice before entering into a credit agreement with another business.

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    Still gathering requirements...


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    Quote Originally Posted by CheeseSlice View Post
    I'm not actually sure about this. This is in the consumer credit act.. but the name kind of gives away that it may not include businesses.

    Just found this:

    BusinessLink: Buyers' terms and conditions and unfair contract terms
    The consumer credit act is not the only protection, however that is a very useful link!

    Credit card issuers have anti-fraud systems in place designed to protect you from unauthorised spending anywhere in the world. Provided you report the fraud within the designated amount of time, you will not be liable for the money spent. Some business card issuers also offer Cardholder Misuse Insurance, to protect against the unlikely event of employee misuse.

    It all comes down to being informed and checking exactly what you get from a given product.

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    Quote Originally Posted by rrp View Post
    Is there any advantage/disadvantage to paying expenses from a company credit card as opposed to paid from director
    I have a company debit card that I use for paying for company stuff. I like it because it means the money comes straight out of the company account and I don't forget to claim it because it appears on the company bank statement. It keeps business and personal stuff separate too.

    If you had big company expenses then it might be worth getting a cash back card (don't bother with those gimmicky points cards) and pocket the cash back.

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    rrp
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    Thanks for all the responses. As I thought, there is no real advantage...

    Think my accountant is suggesting this purely to make it easier to record..

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    Quote Originally Posted by rrp View Post
    Thanks for all the responses. As I thought, there is no real advantage...

    Think my accountant is suggesting this purely to make it easier to record..
    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.

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