(Re-)imbursing expenses early

[Andrew@Wisteria]

Not clear if you want to do this because you actually need the money or another reason. The company can loan you up to £5k without complications (assuming you are able to pay it back!). I'd just pay a round sum now, and pay the expenses/salary in arrears when you return from holiday, and then pay back the loan. I know the loan is already offset but to me it just seems simpler to treat it separately and deal with the expenses as normal.

Note also that It was proposed in the 2013 budget to extend the £5,000 limit to £10,000 in 2014/15.

[expat]

I don't need the money now. I'm reluctant in principle to leave it in the Co bank account until next year, so I'll expense monthly as usual. Since I'm going off on holiday at the end of the week, I thought I'd clear some stuff out of the way first. Just trying to make life easy, you know? So why did I come here?


2 good suggestions, thanks (apart from Just Do It, nobody will get on your case for it): make the bank payment for a later date; or just leave a couple of days until next month. It's only my anal attitude that wants to do it by calendar month!

[Contreras]

Thanks. Most of it is already incurred of course, just the mileage for the last day or two would be loaned.

Not clear if you want to do this because you actually need the money or another reason. The company can loan you up to £5k without complications (assuming you are able to pay it back!). I'd just pay a round sum now, and pay the expenses/salary in arrears when you return from holiday, and then pay back the loan. I know the loan is already offset but to me it just seems simpler to treat it separately and deal with the expenses as normal.

[northernladuk]

What kind of contractor are you that you need mileage expenses so urgently? Just take one of those bundles of 50's from under the mattress to tide you over.

[TheCyclingProgrammer]

Just take a directors loan for what you need then re credit it instead of transferring he money once you submit the expense claim.

[Old Greg]

Pay yourself for the whole month except the last two days. Then pay yourself for the last two days when incurred.

[jmo21]

Can't you just set payment to come out in a few days days time? Most banks website let you set a date.

Or do you actually need the money early?

[malvolio]

Thanks. Most of it is already incurred of course, just the mileage for the last day or two would be loaned.

That's easy then. Get Form P39F from HMRC to account for the interest on the loaned amount (don't forget there's a bit on page 17 about why the loan was necessary) and follow it up with Form P72X to confirm there is no interest to pay and Form P72Y to confirm you haven't paid the interest that's not due, plus the mandatory amendments via the Real Time Filing Service Desk and job done...



IGMC....

[expat]

If it's not yet due to you because you've not spent the money yet then it creates a loan, but a loan outstanding for just a few days has no tax implications so no worries there. If it's expenses you've already incurred then they're owed to you anyway, so it's not a payment in advance at all. All good

Thanks. Most of it is already incurred of course, just the mileage for the last day or two would be loaned.

[Clare@InTouch]

If it's not yet due to you because you've not spent the money yet then it creates a loan, but a loan outstanding for just a few days has no tax implications so no worries there. If it's expenses you've already incurred then they're owed to you anyway, so it's not a payment in advance at all. All good

[expat]

Fine by me, go ahead.

I'll quote you on that.

[MyUserName]

Fine by me, go ahead.

[expat]

I'm heading off on holiday sharpish at the end of the week, and for convenience I'd like to have MyCo pay me this month's expenses and mileage a day or two in advance (I do know exactly how much it will come to). Is this acceptable?