Setting up Direct Debit from Company Accounts to pay off Credit Card in my name

[Waldorf]

To be fair, a lot of accountants initially treat payments to directors as dividends, regardless of dividend vouchers. InTouch, for example, do the same; it's easy enough to correct at the end of the year by informing them of the actual voucher amounts and declaration dates.

[emoji33] that all sounds above board! Sounds similar to Free Agent, whereby a payment to the director creates a dividend, whether the company can afford it or not, never mind the lack of correct procedure and paperwork.

[SueEllen]

Why are you not collecting and keeping receipts?

If your cards are used fraudently you need to go through each transaction on your statement and confirm whether it was yours or not. Thieves like normal shops like Nandos as well.

Therefore with a personal account keep receipts at least until you have your statement, and with a business account keep receipts as long as you keep other business records as they are business records.

[Alan @ BroomeAffinity]

If it's a personal credit card you'll need a p11d. Avoid that by paying it from personal account and reclaiming business expenses, as advised above. Also, you should be keeping the receipts for business expenses so you can prove WHAT you bought, rather than WHERE you bought it. If you're using Expensify or Receipt Bank or similar you can take a pic of the receipt and upload it direct to your accounts system. Then you don't need to keep original receipt.

[PhilMUK]

Thank you to everyone who has responded, it has been very helpful. I will as advised avoid the company paying the Direct Debit and just making a payment myself and then reimburse myself though the company.

Just to clarify the reimbursement procedure - is it as simple as calculating the business expenses and making a payment from my Company Bank Account to the Personal Bank Account, and keeping a record of the transaction?

Thanks for all of the help,

[mudskipper]

Just to clarify the reimbursement procedure - is it as simple as calculating the business expenses and making a payment from my Company Bank Account to the Personal Bank Account, and keeping a record of the transaction?

Yes. If you're using any sort of accounting software or portal, then you should be able to itemise the transactions. If not, then keep a spreadsheet of business expenses.

[northernladuk]

Just to clarify the reimbursement procedure - is it as simple as calculating the business expenses and making a payment from my Company Bank Account to the Personal Bank Account, and keeping a record of the transaction?

Wow.... I'd also spend a bit more time speaking to your accountant or reading up on your finances. This is extremely basic stuff. You should know your accounts well eboughbto question your accountant at year end. You are legally responsible for your accounts and asking a internet forum how to pay your expenses isn't really living up to that responsibility.

Plenty of guides to the right and there is tons of stuff on Google should you not understand something. You also pay your accountant for advice so pick up the phone if you have any questions at all.

[PhilMUK]

Wow.... I'd also spend a bit more time speaking to your accountant or reading up on your finances. This is extremely basic stuff. You should know your accounts well eboughbto question your accountant at year end. You are legally responsible for your accounts and asking a internet forum how to pay your expenses isn't really living up to that responsibility.

Plenty of guides to the right and there is tons of stuff on Google should you not understand something. You also pay your accountant for advice so pick up the phone if you have any questions at all.

Fair points. I am a week into contracting and just getting all of the basic questions out of my system. Thanks for the help.

[mudskipper]

Fair points. I am a week into contracting and just getting all of the basic questions out of my system. Thanks for the help.

Check out the first timers' guides --->

Make sure you understand IR35.

Lots of the accountants also have free guides to download, as does IPSE.

[SueEllen]

Check out the first timers' guides --->

Make sure you understand IR35.

Lots of the accountants also have free guides to download, as does IPSE.

Plus HMRC has lots of guides on their website.

[Alan @ BroomeAffinity]

Get a Freeagent subscription and a Freeagent accountant and you'll be laughing.