Help!! Newbie very confused about Expenses

[TheBigYinJames]

Spot-on.

And OP, don't knock that "only it's tax free" part, that's the fantastic part about company expenses, so put through everything you can legitimately put through the company - computer equipment, subscriptions, portions of your utilities etc. It can add up to quite a few pennies over the year.

Very exceptionally, a client will agree to certain expenses being refunded directly to you, but in 15 years it's never happened to me.

[badger7579]

Just to give you an example..

My client agrees to pay employees of my company a rate of 23 pence per business mile. At the end of the month I invoice the agent for this expense. This money is then paid into my business bank account. (example 23 *400 miles = £92

I then fill out an expense claim form at 40 pence per mile (40 * 400 miles = £160) which goes to my accountant. They then add this to my payslip and this total is transfered from the business bank account to my personal bank account. Salary + expenses.

[The Lone Gunman]

NickFitz answer says it all.
Your companies money is not yours.
You put in an expenses claim to your company. Your company gives you a cheque or pays you direct.
Obviously if you have agreed expenses with your client then you claim off them.

Take good note of what Nick said.
There are limited ways you can get money from your company. Wages, expenses and dividends are legitimate. There are a couple of others (ask your accountant), but anything else would be regarded as theft or fraud.
Be very very careful.

[alfatech]

Thanks for everyones input on this. It all makes more sense to me now!!

This completely changes the way i go about agreeing future contract rates as i need to be thinking about the expenses that will be occurring on a contract (such as travelling to and from work) and include this when negotiating rates with the client.

[expat]

NickFitz answer says it all.
Your companies money is not yours.
...
There are limited ways you can get money from your company. ...

WHS.

Your company's money is not yours.

[Mustang]

But the money in my business bank account is mine anyway.

[Mal Mode]
No no no no no!!!

The money in your Business account is not yours, it belongs to your LTD CO!!! You then have to "make it yours" by paying expenses, paying a salary, paying dividends or other LEGAL ways!!!!

You need to learn that you and MyCo are two DIFFERENT entities!!!!

[/Mal Mode]

[luke warm]

I don't think it's been said by anybody in this thread yet but you need to realise that the company's money is not yours.

[TheBigYinJames]

When is it my turn to shout at the noob?
It's not your money

[Clippy]

Let me clarify so there is no doubt:

The money in your business bank account is not yours, it belongs to George Agdgdgwngo.

[HairyArsedBloke]

DON’T LISTEN TO THEM

They are having you on. You can do whatever you like with the money. You are a director of the company so you can spend the money however you like.