Substantial Travel Expenses

**eek** · 12 July 2011, 12:00

Originally posted by d000hg View Post

Travelling abroad for several weeks and buying accommodation/travel through my personal credit card, to claim back from the company.

However I don't have sufficient personal funds for all this and won't be ready to sort out all the totals until we return... so I need to get money from the company in some way so the credit card bill is met.

Rather than take a dividend to ensure I have personal funds, can the company pre-pay a chunk of cash now as "expected expenses", then the remainder later when I submit my expenses officially?

We're talking maybe £3000.

You've just described the correct purpose of a director's loan. Take one and deal with it afterwards.

**Pondlife** · 12 July 2011, 12:02

Why not process a payment weekly as you incur the costs?

Or pay with the company debit card?

**Clare@InTouch** · 12 July 2011, 12:04

Take it as cash advanced for expenses. If it's outstanding for less than a month then there's no benefit in kind issues regardless of how much it is, so you should be fine for several weeks, and the expense claims can be submitted to ensure the value advanced decreases as you go.

This is assuming you have no current directors' loan.

Or, get a company credit card.

**Bugbait** · 12 July 2011, 12:17

Originally posted by Clare@InTouch View Post

Or, get a company credit card.

+1

This makes things easier on so many levels. Easier to track company versus personal expenses and generally looks better if you’re ever audited (IMO).

**d000hg** · 12 July 2011, 13:02

I have a company debit card but not a credit card. Also though, it gets more complicated sorting travel insurance if you are not paying personally.

And, I get rewards on my personal card

**northernladuk** · 12 July 2011, 13:11

Originally posted by d000hg View Post

And, I get rewards on my personal card

Amen to that!!!

I have incurred a couple of grand a month travelling for a short period and my accountant was quite happy that I forward myself an expenses chunk the month before, carried over the extra and the next month when I put the cost in it up it all came to zero again (with a slight change to my divi to cover the difference). They did offer me the other options as above but were ok with doing it this way. As it was cleared next month the carry over wasn't an issue, as long as it wasn't done regularly.

**SueEllen** · 12 July 2011, 17:33

Originally posted by Bugbait View Post

+1

This makes things easier on so many levels. Easier to track company versus personal expenses and generally looks better if you’re ever audited (IMO).

-1

My personal credit cards have a much better exchange rate than my company cards when abroad.

**Greg@CapitalCity** · 12 July 2011, 18:02

The way forward

Yep, agree with Clare@ - take a funds as a cash advance for upcoming expenses. Effectively you would become a debtor to your company as the expenses reimbursed would exceed expenses reclaimed - but then as the receipts roll in for the expenses you incur, this debtor amount would drop back down to £0. And since you say the expenses will be incurred over the course of a few weeks, it will all sort itself out very quickly.

An issue would arise if you already have a Dir Loan, and this advance would push the loan over 5k, AND the advance is needed for more than a month.

Happy travels!

**Wanderer** · 12 July 2011, 18:38

1. Use the company debit card (my one doesn't get debited for 6 weeks anyway)
2. Use my own credit card (4 to 6 weeks credit and get a better exchange rate) and then pay it off from the company account
3. Take a cash advance from the company and reconcile it at the end of the month
4. Use a cashback rewards card and keep the cashback

I think option 1 is the best because it keeps things simple. If there is a question over you incurring the expense then the evidence is right there on your company bank statement, even if you can't find the reciept.

I guess you could work the cashback option if you really wanted to, but avoid these "air miles" or "reward points" cards they are a waste of time.

Substantial Travel Expenses