Paid expenses

[325i]

I have a query regarding paid expenses

I went on a business trip and I spent £50 of my own money for food and a taxi. As this is covered, my agency has paid this back to me in full.

So my question is, what is the process of transferring this into my personal account? I dont want to be left out of pocket.

Thanks

[rsingh]

If they have paid it back to you, what's the issue?

[speling bee]

I have a query regarding paid expenses

I went on a business trip and I spent £50 of my own money for food and a taxi. As this is covered, my agency has paid this back to me in full.

So my question is, what is the process of transferring this into my personal account? I dont want to be left out of pocket.

Thanks

Send a private message to northernladuk and he'll talk you through it.

[325i]

If they have paid it back to you, what's the issue?

They paid it into my business account. Can I just transfer the amount into my personal account or do I have to declare it on the company accounts?

[captainham]

You have Googled/searched for the forum/read the guides, right?

[kingcook]

They paid into your business' account because it's the business' money, right?

[Contreras]

They paid it into my business account. Can I just transfer the amount into my personal account or do I have to declare it on the company accounts?

1. What does your accountant say about paying travel expenses to yourself?

2. What does your accountant say about claiming travel expenses from the agency?

3a. Is your company VAT registered?

3b. Is your company registered on VAT FRS?

3c. What does your accountant say about VAT and travel expenses?

4. What does your accountant say about P11D and travel expenses?

5. Who's sockie are you, anyway?

Hint: 1 & 2 are separate matters. How, or how much, the agency paid your company, or even if they didn't, makes no difference to how, or how much, or if, you can claim from your company.

[GillsMan]

Here, I'll help, because I'm feeling in a good mood.

OK, so you paid for those expenses personally. Agency have reimbursed the expenses to YourCo Ltd. YourCo Ltd needs to reimburse the money to you personally. Simple as that.

Of course you need to declare it on your company accounts. You need to make sure all transactions are accounted for, to ensure you aren't just syphoning money out of your account. Pay it, declare it. Simple.

I will say that as Ltd Co director, you really do need to know a lot more about this; some posters can get unfairly slated for asking seemingly obvious questions, but in this case, you really should know how to reimburse yourself expenses from YourCo Ltd.

Anyway, hope this helps.

[TheCyclingProgrammer]

In addition to what GillsMan says, don't forget that most typical contractor expenses will need reporting on your P11D unless you have a dispensation...typical things are business travel, accommodation and subsistence payments.

This technically results in a tax charge when entered into your self assessment however you make an equivalent claim on your SA for the same amount as business expenses, cancelling out the tax charge.

The above faff is why it's often worth getting a dispensation for that kind of thing! Especially as HMRC have a tendency to adjust your tax code to reclaim the tax on the P11D amounts due to the timing differences between submitting the P11D and your SA. HMRC did this to me every year. They won't this year as I have a dispensation and no P11D to submit.