Company paypal account

[ladymuck]

Some contractors I know pay for everything personally and then reclaim it from their company (despite me trying to explain that it's a bad idea to mix business and personal to that level)

[northernladuk]

Some contractors I know pay for everything personally and then reclaim it from their company (despite me trying to explain that it's a bad idea to mix business and personal to that level)

It is? You aren't mixing it though? There is a very clear line between the two which is managed by the expenses policy? Mixing it in my mind is building business premises on personal land or business lease insured personally etc..

I'd be interested to hear if this is actually an issue.

[ladymuck]

It is? You aren't mixing it though? There is a very clear line between the two which is managed by the expenses policy? Mixing it in my mind is building business premises on personal land or business lease insured personally etc..

I'd be interested to hear if this is actually an issue.

It was something brought up at one of those contractor finances talks a while ago. I need to look up some decent sources but my understanding was that if you personally pay, rather than your company pays directly, then Hector can take that as acceptable to go through your personal finances in an investigation because there is little financial separation between you and your company. Also, I seem to recall something about expenses hitting your P11d (e.g. mobile phones used to be one such expense) but wouldn't if paid directly by your company. I only pay low level incidentals personally. Everything goes on a company card or paid by DD.

[SueEllen]

Some contractors I know pay for everything personally and then reclaim it from their company (despite me trying to explain that it's a bad idea to mix business and personal to that level)

Are they doing it for stuff like mobile phone and broadband?

Then yes it can cause a problem.

Other one off purchases are easy to sort out.

[northernladuk]

It was something brought up at one of those contractor finances talks a while ago. I need to look up some decent sources but my understanding was that if you personally pay, rather than your company pays directly, then Hector can take that as acceptable to go through your personal finances in an investigation because there is little financial separation between you and your company. Also, I seem to recall something about expenses hitting your P11d (e.g. mobile phones used to be one such expense) but wouldn't if paid directly by your company. I only pay low level incidentals personally. Everything goes on a company card or paid by DD.

Hmm. Interesting. I'd disagree with the financial separation. I have an expenses policy to document the separation and physical bank transfer between personal and business accounts for the actual money. I'd say that's about as much financial separation as you can get unless I'm misunderstanding the term.

The complexity would come with examples previously mentioned and contracts for company phones it paid from personal accounts, which you shouldn't do anyway. Purchases should be fine.

P11D's have changed this year as well.

Inneresting.

[ladymuck]

Hmm. Interesting. I'd disagree with the financial separation. I have an expenses policy to document the separation and physical bank transfer between personal and business accounts for the actual money. I'd say that's about as much financial separation as you can get unless I'm misunderstanding the term.

The complexity would come with examples previously mentioned and contracts for company phones it paid from personal accounts, which you shouldn't do anyway. Purchases should be fine.

P11D's have changed this year as well.

Inneresting.

If you keep decent records and can show you submitted an expense claim of £x and there was a corresponding bank transfer of £x then it should be fine. I'm just a bit pernickety and like to avoid paying personally for anything that I want to put through my company

[northernladuk]

If you keep decent records and can show you submitted an expense claim of £x and there was a corresponding bank transfer of £x then it should be fine. I'm just a bit pernickety and like to avoid paying personally for anything that I want to put through my company

I can understand that and nothing wrong with it at all. If there is ever a hint it becomes any kind of risk I'll switch to the same am sure.

[Eirikur]

Some contractors I know pay for everything personally and then reclaim it from their company (despite me trying to explain that it's a bad idea to mix business and personal to that level)

Why? I pay most of my business expenses hotels, Laptop, Printer etc etc on my private credit card and reimburse myself. Never been a problem, accountant says it's all perfectly fine. And this helps me to save for 4 free BA tickets every year.

I still have every business expense receipt since my company was incorporated

[washed up contractor]

Be exceptionally careful if using a PP account for running a business. Paypal can and do suspend access to these accounts under the guise of fraud prevention or 'unusual transaction patterns' as they like to call it.

If you deposit large sums of money into a PP account in readiness to make purchases, do not be surprised if they lock it and you have a devil of a job to get access to the money again.

[elpato]

Why? I pay most of my business expenses hotels, Laptop, Printer etc etc on my private credit card and reimburse myself. Never been a problem, accountant says it's all perfectly fine. And this helps me to save for 4 free BA tickets every year.

I still have every business expense receipt since my company was incorporated

Ditto - even down to the same Amex. Every receipt is stored physically and digitally, very clear trail of what's personal and what's not