Another expense query

Re: Director's Loan

me too. Debit card, and a healthy bank account (yep I signed up another victim this week)

Re: Director's Loan

That's what I do - all company expenditure (rail fares, hotels, dinner, equipment, etc.) through the company card. All I claim back directly is mileage (it's my car).

Simple on the P11D and no arguments about BIK

Re: Director's Loan

Use of debit card has the added advantage that expense thus paid for do not have to appear on P11D.

Re: Director's Loan

Cater Allen now issue a debit card which I use for any company purchases. Doesn't your company bank do something like that?

Re: Director's Loan

If company has bank account then surely you simply make a loan (owner's capital) to the company (asuming the account has insufficient to cover costs).

When the company can afford it, it can pay you back.

More over, it is simply a question of receipts and accounts.

If self-employed then I assume it goes like this. I need new PC at £2000. I buy new PC and keep receipt. I show purchase on books. At year end 25% (£500) deducted from taxable total. I own asset worth £1500.

Where have the accountants gone?

Director's Loan

Speak more of this thing you call a "Directors Loan"???

You can take a directors loan to the tune of £5,000 but

a) you must pay this back before 9 months and 1 day after the accounting reference date. i.e. year end 31 December 2003 the loan must be repaid before 1 October 2004.

b) the loan must not go above £5,000, or you will have problems with Companies Act, Class 1a NIC, and additional personal tax.

c) additional company tax is payable of 25% of the outstanding balance, if the loan has not been cleared within nine months and one day, although you would get this back from the IR, once the loan has been cleared, but it takes time.

d) beware of a running balance, salary, dividends, expenses, over paid, or you have personal expenditure going through the company, this could increase the DLA.

e) make sure your accountant puts this information on the P11d, if more than £5k, and on the CT600a to show the IR the loan was repaid.

Just thoughts, speak to your accountant for professional advice.

Re: erm...

I'm not entirley sure but I believe a Director can take a loan from the company (check with your accountant). This loan could be for the amount of the goods.

Then to repay the loan just claim the expences and pay it straight back.

Hmmm doesn't soud right when I typed it !!!

or do waht I do

Buy the goods on credit card, pay myself expences based upon the reciept, put money in personal account (earm 0.00001p interest). One month later pay credit card bill.

Re: erm...

Speak more of this thing you call a "Directors Loan"???

Mailman

Re: erm...

DIRECTORS LOAN !!!!

Re: erm...

Beeeeeeecause...I am the company. Company expenses are things I have to pay for first...and then file an expense claim and then work out my tax after that.

Id rather it was simple...get the quote...work out my new payment+new equipment quote and then go get the equipment I neeed.

BUT...I guess its just easier to go get it then claim it back after the purchase has been made.

Mailman

Re: erm...

I really don't follow what you are talking about. If the company purchases legit. business expenses directly as it should, why would it need to give money to you so you can buy them?

If you do pay for them yourself, don't forget to make sure receipts in co name or you can't claim the VAT anymore.

Re: erm...

The company could...but Im a tight bastard and would rather get the money first before having to dig in to my own pocket to pay for this stuff

Mailman

erm...

No. Would you expect BT to bill you for the calls you are going to make next year?

Can't YourCo buy its own assets?

But then I'm probably missing something obvious

receipts, receipts, receipts, receipts ......

I think so long as you do get receipts then fine. I'm sure a cash advance allowing you to purchase these goods is also acceptable, so long as you do buy em...

Hi there,

Im wanting to purchase a new pc for my company and also some photographic equipment (Canon EOS 20D, my company also does freelance photography). Do I actually have to purchase the equipment first and then file my expenses claims or can I provide something like quotes so that the expenses can be processed before the purchase?

Thanks

Mailman