Buying stuff on eBay for company use

[TheCyclingProgrammer]

I could easily buy a TV on the company credit card, with the company name on the invoice and put it in my living room. I don't see how the money gets from A to B or if the invoice names the company or the director of the company makes the slightest difference to that question.

Different thing entirely though isn't it?

[VectraMan]

In short, you're right, people probably worry too much about things like this but the more expensive it is, or the more likely it is that it could be construed as there being a personal benefit, or if it's a capital purchase, the more important it is to have proof it's in the company name.

I could easily buy a TV on the company credit card, with the company name on the invoice and put it in my living room. I don't see how the money gets from A to B or if the invoice names the company or the director of the company makes the slightest difference to that question.

[TheCyclingProgrammer]

Well, there is - there is the receipt of me purchasing it personally, and the accompanying expenses entry in my company accounts.

What I mean is evidence of it being on the company's behalf, not that you paid for it.

In other words, there's a difference between the company's business expenses, and your business expenses.

Unfortunately, HMRC don't go into a great detail on this. They mention it here:
Employment income: expenses payments and reimbursements

Businesses are often run in such a way that employees make payments on their employer's behalf. For example an employee may buy stamps for the employer and be paid from petty cash. This transaction is outside the scope of Section 62 and Section 72: the employee has received no money of his own on which we could make such a charge.

It's a pretty trivial example though and one clearly wouldn't expect anything more than a simple receipt in this case.

Maybe an accountant would like to chip in on this one?

[d000hg]

Buying something on the company's behalf is legitimate (although it's always better to try and pay for things using the company card) but there should really be some evidence of this unless it's for something trivial like stamps/stationary.

Well, there is - there is the receipt of me purchasing it personally, and the accompanying expenses entry in my company accounts.

[TheCyclingProgrammer]

Yep. I don't know why people worry about this sort of thing so much. If you buy a train ticket to get you to your contract, you don't ask for it to have the company name on it, and most would just buy it personally and refund.

The difference being, the train ticket would have to be reported on your P11D unless you have a dispensation and would strictly speaking be a taxable benefit unless you make an equivalent claim on your SAR.

Buying something on the company's behalf is legitimate (although it's always better to try and pay for things using the company card) but there should really be some evidence of this unless it's for something trivial like stamps/stationary.

In short, you're right, people probably worry too much about things like this but the more expensive it is, or the more likely it is that it could be construed as there being a personal benefit, or if it's a capital purchase, the more important it is to have proof it's in the company name.

[VectraMan]

No different to buying anything else personally and getting reimbursed. Same rules: wholly and exclusively, etc...

Yep. I don't know why people worry about this sort of thing so much. If you buy a train ticket to get you to your contract, you don't ask for it to have the company name on it, and most would just buy it personally and refund.

[DirtyDog]

Use your current ebay account, but add in a second billing address with the company name and use that, add your company credit card to paypal and use that.
Therefore invoiced to company, and paid for by company, and not a personal transaction.

That's what I do.

[doodab]

Not sure. But I don't really want my personal account linked to my company credit card either, so I just bought it personally and will treat it like buying something from Tesco/Staples for the business - keep the receipt and claim it back.

That's what I do, bought a few servers, disks, RAM etc over the years, never had any problems. Client co source a lot of servers from eBay as well though I think they have an account in the name of the business.

Selling is probably a bit harder as you have to account for ebay & paypal deductions, I get around that by hoarding things and never actually selling them.

[d000hg]

Does Ebay reputation even matter for buyers?

Not sure. But I don't really want my personal account linked to my company credit card either, so I just bought it personally and will treat it like buying something from Tesco/Staples for the business - keep the receipt and claim it back.

[Contreras]

I needed a gadget for testing, and the best place price & choice-wise was eBay for a 2nd-hand one.

I'd rather buy as the company but have built up a reputation with my personal account and used that.

Is this any different to buying anything else personally and getting reimbursed?

No different to buying anything else personally and getting reimbursed. Same rules: wholly and exclusively, etc...

That said, I have separate Ebay/Paypal accounts for the company and me, the former being quite clearly in the company name. Nothing to hide but I don't really want Hector browsing my personal Ebay activity thank you.

If you do buy through a private Ebay account you can still pay via YourCo's Paypal account or company debit card and reimbursement would be a non-issue.

Does Ebay reputation even matter for buyers?

[FarmerPalmer]

Use your current ebay account, but add in a second billing address with the company name and use that, add your company credit card to paypal and use that.
Therefore invoiced to company, and paid for by company, and not a personal transaction.

[TheCyclingProgrammer]

Is this any different to buying anything else personally and getting reimbursed?

If you're purchasing on behalf of the company, there shouldn't be any implications and it shouldn't need to go on the P11D...however, I've always taken "purchased on behalf of the company" to mean the invoice should be in the company name.

However...I think if you make it clear to the seller you are purchasing on behalf of YourCo and they accept that and you have written evidence of this, that should be enough. Maybe you could ask the seller for an invoice in YourCo's name?

[d000hg]

I needed a gadget for testing, and the best place price & choice-wise was eBay for a 2nd-hand one.

I'd rather buy as the company but have built up a reputation with my personal account and used that.

Is this any different to buying anything else personally and getting reimbursed?