Can someone suggest the best way to record business expenditure that it paid on a personal card for a Limited Company and subsequently repaid by the company.
I'm not sure if creating a dummy credit card is best.
Are there any tax implications for the person paying the expenses.
You could treat it as a petty cash payment for expenses. Just as long as the receipts and invoices are kept and recorded properly, there's no reason why you can't do this. Then the owner should be reimbursed or they can be treated as money put into the business.
If by cheque, then I would suggest doing a bank payment and split the payment by the relevant expense types to the correct nominal codes. As long as you have the invoices to back the expenses up then you can claim the VAT if the Ltd Co is VAT registered and there is nothing to worry about. Just treat as a normal expenses.
what I would suggest if that you have some form of "Expenses Claim Form" filled out and signed off by the Director each time you repay the expenses. This way it makes it a bit more official and will keep it easier to keep track off and you will have some form of a paper trail for it.
She's not actually a Director, just a manager, so I would assume a DLA isn't an appropriate way for these expenses.
She usually builds the expenses up and then gets paid back in a bulk payment by BACS, so I will just code this payment to the relevent nominal codes and keep the relevent invoices/receipts.
She's not actually a Director, just a manager, so I would assume a DLA isn't an appropriate way for these expenses.
She usually builds the expenses up and then gets paid back in a bulk payment by BACS, so I will just code this payment to the relevent nominal codes and keep the relevent invoices/receipts.
Thanks everyone :)
Sorry, assumed director, as Limited Company was mentioned. You're right as an employee it is irrelevant.
In which case yes, use an expense claim form and post the totals when paid. Getting a good expense claim template would help. In particular, if the company is VAT registered remember to get the vat right on the expenses too.
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-- Edited by semsley on Thursday 6th of January 2011 10:47:57 PM
Just read that thread and it doesn't look like it was resolved/ concluded. I am sure a business can claim the vat on expenses paid by and re-imbursed to employees providing a valid vat receipt is provided.
When I was employed I had to provide an expense claim for which had a vat column. What would be the point if they couldn't claim vat.
Also mileage includes a special vat calculation. Backup receipts are those provided. Don't see that the payment method matters.
Can you explain why you think it is not?
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