accountancy cost as expense?

[redbridge]

Hi,

My accountant says:
"please note you cannot claim expenses which are paid from your business account. Example: Accountancy fee, Childcare.
Only expenses paid personally by you should be claimed on the expenses sheet."
I paid £243 towards child care expense directly from my company account to the child nursery and the balance using personal credit card.
I thought child care and accounting costs are valid expense claims.

I am confused now.

[TestMangler]

Hi,

My accountant says:
"please note you cannot claim expenses which are paid from your business account. Example: Accountancy fee, Childcare.
Only expenses paid personally by you should be claimed on the expenses sheet."
I paid £243 towards child care expense directly from my company account to the child nursery and the balance using personal credit card.
I thought child care and accounting costs are valid expense claims.

I am confused now.

You've answered your own question there. Maybe you are confusing expense claims with tax deductible.

[Andrew@Wisteria]

I think he is referring to petty cash expenses (out of pocket) so presumably the expenses from the business account are recorded separately somewhere else.

[jjdarg]

You and your company are two different entities. (Simplification, I know but) If the company pays for it, you haven't, therefore it isn't a "personal" expense for self assessment reasons.

I'm sure someone will kick in with a more technically correct interpretation.

[Jessica@WhiteFieldTax]

As Andrew said, OP is confusing deductibility with expense claims.

Purpose of expense claim is to capture tax deductible expenses not paid via business bank account.

Those that are paid via business bank account are picked up directly.

If they go in expenses claim as well then confusion reigns.

Happy christmas.

[redbridge]

Thanks

Thank you all I get it now

Merry Christmas

[PerfectStorm]

I get around this by having two tabs on my spreadsheet - one for claimed expenses and one for those paid from the company account or company debit card. The first one pays you once a month, the second doesn't.

[Contreras]

I get around this by having two tabs on my spreadsheet - one for claimed expenses and one for those paid from the company account or company debit card. The first one pays you once a month, the second doesn't.

Or record all expenses on a single sheet but put the amount in separate columns for paid 'from account' or 'out-of-pocket'.

To reclaim out-of-pocket expenses on the same sheet add another row entry for 'Expenses reclaimed' with -ve amount in the 'out-of-pocket' column and equal but +ve amount in the 'from account' column. Simples.