Reply to: Company paypal account

[northernladuk]

And computers and printers etc.

So what's your point, caller?

Dunno what you are trying to prove so I'll leave to your next response as I'm sure you'll want the last comment.

[TheFaQQer]

He specifically said office equipment.

And computers and printers etc.

So what's your point, caller?

[northernladuk]

I'd have thought that you'd know the difference (or know someone to ask )

If you pay for something personally and then claim it back, you fall into the "wholly and exclusively" limitation. However, if you buy through the company then you may be able to use the item personally as well with some incidental use.

Imagine you need to know where to go to get to client site (some cars apparently don't have in built navigation, nor a chauffeur). So you buy a sat nav device and leave it in the car. If you pay personally and claim it back, then it could be argued that it's not a business expense because it's not wholly and exclusively for the business since you could use it yourself. However, if you bought it through the company directly, then you would still be able to use it personally as an incidental use. See posts passim ad nauseum for more details.

(That better? Now **** off and ask your accountant )

He specifically said office equipment.

[TheFaQQer]

You are in a grumpy mood today.

I'd have thought that you'd know the difference (or know someone to ask )

If you pay for something personally and then claim it back, you fall into the "wholly and exclusively" limitation. However, if you buy through the company then you may be able to use the item personally as well with some incidental use.

Imagine you need to know where to go to get to client site (some cars apparently don't have in built navigation, nor a chauffeur). So you buy a sat nav device and leave it in the car. If you pay personally and claim it back, then it could be argued that it's not a business expense because it's not wholly and exclusively for the business since you could use it yourself. However, if you bought it through the company directly, then you would still be able to use it personally as an incidental use. See posts passim ad nauseum for more details.

(That better? Now **** off and ask your accountant )

[northernladuk]

Apart from the difference between wholly and exclusively if paid for personally, and incidental use if paid for by the company, yes.

Ask your accountant to explain the difference if you're not sure.

You are in a grumpy mood today.

[TheFaQQer]

We've had a Papyal Business account for years with no problems. We never keep any money in there, just link it to the company debit card so purchases come out of the company bank account.


Keeps it simple when buying software licenses etc from the states.

This. It's simple enough to create for your company and you even get a penny or two from them when they do the initial authorisation test to approve your card / account.

[TheFaQQer]

Wouldn't it be just as easy to pay with a personal credit card and claim it back? Or is there some sort of cash flow/credit option making this difficult?

Apart from the difference between wholly and exclusively if paid for personally, and incidental use if paid for by the company, yes.

Ask your accountant to explain the difference if you're not sure.

[blacjac]

We've had a Papyal Business account for years with no problems. We never keep any money in there, just link it to the company debit card so purchases come out of the company bank account.


Keeps it simple when buying software licenses etc from the states.

[Jamy]

Business Account

[adubya]

I've set one up for my company to do just this. One payment yearly to Canada which I find easier and cheaper through paypal. Bit of a pain to set up, with mutliple hoops to jump through.

Paypal business account or individual account ?

[Jamy]

I've set one up for my company to do just this. One payment yearly to Canada which I find easier and cheaper through paypal. Bit of a pain to set up, with mutliple hoops to jump through.

[elpato]

Why? I pay most of my business expenses hotels, Laptop, Printer etc etc on my private credit card and reimburse myself. Never been a problem, accountant says it's all perfectly fine. And this helps me to save for 4 free BA tickets every year.

I still have every business expense receipt since my company was incorporated

Ditto - even down to the same Amex. Every receipt is stored physically and digitally, very clear trail of what's personal and what's not

[washed up contractor]

Be exceptionally careful if using a PP account for running a business. Paypal can and do suspend access to these accounts under the guise of fraud prevention or 'unusual transaction patterns' as they like to call it.

If you deposit large sums of money into a PP account in readiness to make purchases, do not be surprised if they lock it and you have a devil of a job to get access to the money again.

[Eirikur]

Some contractors I know pay for everything personally and then reclaim it from their company (despite me trying to explain that it's a bad idea to mix business and personal to that level)

Why? I pay most of my business expenses hotels, Laptop, Printer etc etc on my private credit card and reimburse myself. Never been a problem, accountant says it's all perfectly fine. And this helps me to save for 4 free BA tickets every year.

I still have every business expense receipt since my company was incorporated

[northernladuk]

If you keep decent records and can show you submitted an expense claim of £x and there was a corresponding bank transfer of £x then it should be fine. I'm just a bit pernickety and like to avoid paying personally for anything that I want to put through my company

I can understand that and nothing wrong with it at all. If there is ever a hint it becomes any kind of risk I'll switch to the same am sure.