Charges to business bank account

[mercdoc]

Hi all,


With regards to what can be paid directly from a business bank account: there are obviously costs which are classed as expenses and claimed as such however what about costs which are not expenses and you have no intention of claiming as expenses? Can these go through the company bank account? Specifically things like rent, council tax etc on a property which is a home but also the business address? Can you simply pay these from the account without counting as an expense?

Thanks!

[malvolio]

Hi all,


With regards to what can be paid directly from a business bank account: there are obviously costs which are classed as expenses and claimed as such however what about costs which are not expenses and you have no intention of claiming as expenses? Can these go through the company bank account? Specifically things like rent, council tax etc on a property which is a home but also the business address? Can you simply pay these from the account without counting as an expense?

Thanks!

No. Or yes if you want to risk being done for tax evasion. May be a good idea to do some reading?

[wattaj]

Hi all,


With regards to what can be paid directly from a business bank account: there are obviously costs which are classed as expenses and claimed as such however what about costs which are not expenses and you have no intention of claiming as expenses? Can these go through the company bank account? Specifically things like rent, council tax etc on a property which is a home but also the business address? Can you simply pay these from the account without counting as an expense?

Thanks!

Only use your company bank account to pay for things that are "wholly and exclusively" for the business; everything else one pays personally, out of one's personal bank account.

You sound quite new to running a LtdCo, so do some reading. Don't use your company as an extension of your own personal wealth; it is not, it is a completely separate entity, and it should be treated as such.

HMRC is your guide: HM Revenue & Customs: Tax allowances and reliefs - employees or directors
Google is your friend: Let me google that for you

[TheCyclingProgrammer]

If a company pays your bills for you, then those payments will be treated as taxable income, liable to NI and in some cases need to go through your payroll

The only exception is if you treat these payments as a directors loan if you intend to repay the amounts and are aware of the consequences of getting this wrong.

But in short, don't do it. Keep your business and personal expenditure separate. Even if you need to take a loan from YourCo, I would transfer it to your personal account first.

[TheCyclingProgrammer]

One other thing. If you were actually asking in a roundabout way if your business can contribute towards your living expenses, then you really need to read the beginners guides. You can generally claim £4/week without calculations/evidence or the cost of additional expenses like heating/electric (but not fixed costs) if it's more and you can show evidence.

[TheFaQQer]

TECHNICALLY, the company could pay for the non-expenses, by accruing them to the directors loan account.

However, you would eventually have to repay the loan, and it may incur an interest charge so there is no reason to do this.

PLEASE speak to an accountant before things get too bad - there are plenty recommended in the sticky thread in this forum.

[northernladuk]

I'm sorry. This has got to be a troll. No one could ask this and be serious.

If it is please god get an accountant and start speaking to him. You are legally responsible for your finances so need to step up.

[Martin at NixonWilliams]

It is my strong advice that you avoid making any personal payments from the company account, this usually causes problems - Make payments of salary, expenses and dividend payments to your personal account and settle your bills etc. from there.