Company pays or reclaim via expenses?

[johhnysalad]

Is it more appropriate to

• Pay for accommodation/expenses yourself then reclaim as an expense
• Use company debit card to pay

I'm inclined to use the company card where they are directly reimbursable?

[SueEllen]

I use the company cards if it's a business expense much easier paperwork wise.

[VectraMan]

I use the company cards if it's a business expense much easier paperwork wise.

Why? You still have to account for the cost either way.

I tend to use my personal credit card, but that's mainly because of the alledged extra protection you get with a credit rather than debit card.

[SueEllen]

Why? You still have to account for the cost either way.

True but I use different personal cards for different personal purchases. So I may as well use my company cards for company purchases as I have them.

[Bluebird]

Is it more appropriate to

• Pay for accommodation/expenses yourself then reclaim as an expense
• Use company debit card to pay

I'm inclined to use the company card where they are directly reimbursable?

If you can use the Co Card - its easier on the paperwork.

[Sausage Surprise]

Company card or cheque (if they'll accept one). Always paid for my digs in Kent this way. Saves on the paperwork.

[kirk]

company cc for me, easier on the bank account and the paperwork

[jiminajam]

Green behind the ears, screwed, or both?

Hi,

I was with an accountants for my previous contract. About midway through this year they told me that they were moving to a new charging structure to make things more transparent. The transparency, at first, seemed to be costing more money. So I called them.

When I started with them, they told me they charge a flat rate of up to £26 per week depending on the amount invoiced. The new 'transparent' charges included this £26 per week, plus a monthly £88 'processing charge' which seemed extortionate. Anyway, I've taken measures against this and set up a new company.

When I called the accountants they explained the transparency as;

Well before, you see, we were keeping the margin between the 17.5% VAT rate and the 12% flat rate scheme that we registered your company for when we set it up. So, in actual fact, you are taking home more money now than what you were before we made this change. Great.

What about the 5.5% / 4.5% of all invoices issued in the past year that you creamed from me without me knowing about it? Which would amount to something like £6000 over the 2 years?

I don't feel very 'great' about it.

Now, I can see the responses to this, saying you should have known etc. call me niaeve but I didn't expect my accounts to be royally shafting me.
I mean, all in all, I've probably contributed £10k to my ex accountant over the past 2 years, for a company with a turnover less than £75k this is highwayman stuff.

Is there anything I can do about this?

Jim.

[Burdock]

Hi,

It's been a long time since I've posted here! Hope all are well

Just wondered if anybody had any more advice about this issue a year or so on?

Are there any issues of tax efficiency between paying directly from company accounts, or claiming as an expense?

Many thanks for any tips!
Burd

[BolshieBastard]

Assuming you are VAT registered, you should ALWAYS pay for expenses via the company. This is because the company can claim the VAT on the expense where this is appropriate.

If you pay out of your own pocket, the company can reimburse you in full but the company cannot then claim the VAT which you paid as an individual on the total bill.