So I started a LTD company and part of the lease we are required to be a card only company with no cash at all which I actually prefer as it makes life a lot easier.
The question I have is – is it ok for me to reimburse myself expenses from the supplier?
The reason I ask –
The local supplier has a minimum order and delivery charge and I order at least 2 times a week.
If I collect the goods myself, there is no delivery fee so I save on that part but he doesn’t take card payments. So what I have to do is withdraw money from the business account, then pay the supplier x amount and then I deposit the remainder back in to the business account.
What I’ve thought of doing is – withdrawing from my personal account and paying the supplier, then reimbursing myself for the expense from the business account. This would work much better for me and the business as I can then put the change in to the “change tin” at home and also the business account will then be easier for year end accounts as all income and outcome will be visible from the bank accounts due to us being a card only company.
Will there be any issues if I did this method?
2 comments
That’s absolutely fine. HMRC don’t really care where the cash comes from and goes to, as long as it can all be accounted for.
They simply do not ever see your banking or bank accounts unless you’re being investigated for potential fraud, so they’d never even know which bank account the money came from.
If you have an invoice for that service, that’s all they really care about. I often pay for things on my own card just because some companies are funny about delivering to addresses which the card isn’t registered to, so I pay on my own and then just BACS the money back to myself from the company account.
I can’t see there would be a problem with that, just ensure you keep all the paperwork and the receipts/invoices are made out to your company.
I often buy things on behalf of work. I pay for them myself and then give the invoice to the company. They will somehow pay me back, usually an expenses run at the end of the month.
In your case you’re probably best running a directors expenses account in the accounts system.