Using a personal credit card for company expenses

[Bluebird]

Hi Malvolio. Thanks for all you help on this, especially the HSBC info.

I'm crystal clear on the company money and personal money belonging to two different legal entities, it would appear to be a very simple concept. What I don't understand is the difference between on one hand transferring money from MyCo to my current account (as the result of a valid business expense claim) and on the other hand transferring money from MyCo to my credit card account (as the result of a valid expense claim).

If we use the example of paying for PCG membership, it seems so far we have:
PCG <-- my credit <-- my current <-- MyCo = GOOD
PCG <-- my credit <-- MyCo = BAD
PCG <-- MyCo = GOOD

Where's the sense in that?

If you have paid via a personal cc, then you should have a reciept - simply use those receipts to transfer money from your Ltd Bank Account to your Personal Current Account, then onto your personal Credit Card Account.

Granted it does seem a bit pedantic that transferring directly from your Ltd Bank Account to Your Personal CC account is an easier route, but for the sake of one extra transaction it's worth it to show that they are seperate.

The best way to look at it is this - if you've ever been a permie - have you ever had expenses paid directly to your credit card account ? Probably not - so why do this now ?

[philip@wellwoodhoyle]

Where's the sense in that?

It is UK tax law - where does anything say it has to make sense? We either abide by the rules or lobby for them to be changed. Ignoring the rules is not an option unless you like the idea of having tax investigations and paying out unnecessary tax, nic, penalties etc.

[ittony]

Thanks WHA, Bluebird & Malvolio, I think I'm slowly getting the picture. Hopefully this has all been of some use to some other visitors too. There must be a fair few in similar positions to me of late.

So it's definitely okay for me to send the PCG a company cheque then? No need to pass the money through my current account?

On a side note, I can't help noticing there's a bit of a Welsh contingent here. Anyone know of a good Cardiff accountant?

[Bluebird]

Thanks WHA, Bluebird & Malvolio, I think I'm slowly getting the picture. Hopefully this has all been of some use to some other visitors too. There must be a fair few in similar positions to me of late.

So it's definitely okay for me to send the PCG a company cheque then? No need to pass the money through my current account?

On a side note, I can't help noticing there's a bit of a Welsh contingent here. Anyone know of a good Cardiff accountant?

I'm in Cardiff but use SJD.

[malvolio]

I'm in Cardiff but use SJD.

I'm Welsh but live in Bristol and use SJD...

[Pondlife]

In Cardiff but use Upton & Co (formerly 1st Accountancy)