Reply to: Setting up Direct Debit from Company Accounts to pay off Credit Card in my name

[SimonMac]

Every month I get a statement from Amex for my old corporate card, which has a credit of 2p on it because I deliberately overpaid the final bill 10 years ago after their customer service rep was rude to me on the phone

I had a River Island store card (if you signed up on the day you got an extra 15% off, and I bought myself my first suit), next day I settled it but paid an extra 1p. For years I would get a statement saying I was in credit, always made me laugh thinking that them holding onto my one penny was probably costing them more than that in just the postage alone, not to mention the printing costs etc.

When who ever ran the card sold it to another company, the new company continued to send me statements until one day they just said they had closed the account and donated the money to charity. I made sure I added the 1p on my self assessment as a charity donation

[NotAllThere]

... All I see is P2P lending which will end in one supermassive explosion and everybody wailing about how much they've lost. "You bailed me out of Icelandic banks; now bail me out of this, sob!"

At this point part of the discussion went off topic, so I've moved it to General.

[FrontEnder]

I've been in banking and cards since the end of the last century but I've never heard why you can't get reasonable company card deals. In the late 80s I had a Lloyds Amex company card but they stopped doing them without giving any explanation.

If you mean stuff like cashback, i would guess that it's not profitable for banks to offer it to businesses.

Cashback on purchases don't make the bank/card provider much, if any profit. They make the real money from late payments or people who don't pay the full balance each month, both of which are far less likely with businesses.

[LondonManc]

Do it as you would if you were putting through expenses if you're a perm - create an expenses spreadsheet, detail each item that you're claiming for on a monthly basis and push that total amount over onto your Amex (or even your personal account) as an expenses payment. Ask your accountant about it.

[Danglekt]

Thank you to everyone who has responded, it has been very helpful. I will as advised avoid the company paying the Direct Debit and just making a payment myself and then reimburse myself though the company.

Just to clarify the reimbursement procedure - is it as simple as calculating the business expenses and making a payment from my Company Bank Account to the Personal Bank Account, and keeping a record of the transaction?

Thanks for all of the help,

I create a spreadsheet every month which lists the expense, the reason, the value and the date - I then print it, staple the receipts to it and file it for that month. One of the lines is my mileage claim (which has a seperate breakdown spreadsheet)

I then transfer the amount on the bottom of the spreadsheet from my business account to my personal account.

If I need to I then pay off whatever I have used to buy the stuff personally.

Very easy, takes about 15 mins a month, and nice and clean.

[TheFaQQer]

I've been in banking and cards since the end of the last century but I've never heard why you can't get reasonable company card deals. In the late 80s I had a Lloyds Amex company card but they stopped doing them without giving any explanation.

Every month I get a statement from Amex for my old corporate card, which has a credit of 2p on it because I deliberately overpaid the final bill 10 years ago after their customer service rep was rude to me on the phone

[TheFaQQer]

Really? InTouch have never suggested this to me - I'd be querying it if they did. I know they use the loan account for payments that are below or above what you're supposed to be taking, but that's different to declaring a dividend without the paperwork.

I concur - on the one occasion that I borrowed money from the company, it went into the DLA. Similarly, my DLA currently shows that I am owed money from the company, whereas my wife owes a small amount to the company because she accidentally used the wrong PayPal account.

They have never declared a dividend for me, nor would I expect them to. If they treated all payments to me apart from salary as a dividend, I suspect I wouldn't be a client for long

[Cirrus]

Financial Services - Bunch of Wasters

I have a personal Amex card

I've been in banking and cards since the end of the last century but I've never heard why you can't get reasonable company card deals. In the late 80s I had a Lloyds Amex company card but they stopped doing them without giving any explanation.

There's an incredible amount of hot air around 'FinTech' but nothing useful emerges. All I see is P2P lending which will end in one supermassive explosion and everybody wailing about how much they've lost. "You bailed me out of Icelandic banks; now bail me out of this, sob!"

[Boo]

You need to get a new accountant.

Dividends must be paid from retained profit, and a dividend voucher created.

Yes, but there is nothing to prevent you declaring a dividend and then drawing it down by using the AMEX card.

Boo

[Alan @ BroomeAffinity]

Get a Freeagent subscription and a Freeagent accountant and you'll be laughing.

[SueEllen]

Check out the first timers' guides --->

Make sure you understand IR35.

Lots of the accountants also have free guides to download, as does IPSE.

Plus HMRC has lots of guides on their website.

[mudskipper]

Fair points. I am a week into contracting and just getting all of the basic questions out of my system. Thanks for the help.

Check out the first timers' guides --->

Make sure you understand IR35.

Lots of the accountants also have free guides to download, as does IPSE.

[PhilMUK]

Wow.... I'd also spend a bit more time speaking to your accountant or reading up on your finances. This is extremely basic stuff. You should know your accounts well eboughbto question your accountant at year end. You are legally responsible for your accounts and asking a internet forum how to pay your expenses isn't really living up to that responsibility.

Plenty of guides to the right and there is tons of stuff on Google should you not understand something. You also pay your accountant for advice so pick up the phone if you have any questions at all.

Fair points. I am a week into contracting and just getting all of the basic questions out of my system. Thanks for the help.

[northernladuk]

Just to clarify the reimbursement procedure - is it as simple as calculating the business expenses and making a payment from my Company Bank Account to the Personal Bank Account, and keeping a record of the transaction?

Wow.... I'd also spend a bit more time speaking to your accountant or reading up on your finances. This is extremely basic stuff. You should know your accounts well eboughbto question your accountant at year end. You are legally responsible for your accounts and asking a internet forum how to pay your expenses isn't really living up to that responsibility.

Plenty of guides to the right and there is tons of stuff on Google should you not understand something. You also pay your accountant for advice so pick up the phone if you have any questions at all.

[mudskipper]

Just to clarify the reimbursement procedure - is it as simple as calculating the business expenses and making a payment from my Company Bank Account to the Personal Bank Account, and keeping a record of the transaction?

Yes. If you're using any sort of accounting software or portal, then you should be able to itemise the transactions. If not, then keep a spreadsheet of business expenses.