My wife is the director of a new Ltd. and she's at the point where she has to fill in the first accounts. What we've realised is that some of the business expenses have been paid using my credit card (I'm not a Director of the company). This is obviously due to our negligence, but they're legitimate business expenses.
I know that the expenses paid with my wife's personal credit card can be handled via a Director Loan, but I'm not a Director and not involved with the company in any way so far.
What are our options in this case to unwind cleanly this awful situation? I can think of one option of adding myself as a Director too. Would I be able to claim expenses retroactively? Any other options? We're not prepared to write off the amount as it's significant (for us!)
Doesn't matter that its your card, it will still go through Directors Loan. The directors household has introduced the money, whether it be joint bank accounts, your card, your kids piggy bank :)
This is very common. Don't worry too much about it.
All that has happened is that you have loaned money to your wife who has invested it in the company but the middle bit of going through the wife has been ommited.
you would recognise the expense against the receipt to give evidence of cost and reimburse the expense from the company to your wife who should pass it back to you (no tax implications as you are married).
Alternatively treat as though your wife purchased the asset privately and use her DLA as a loan to the company.
When funds allow she can withdraw the money from the DLA and if required reimburse you from that.
Your related parties, there's no interest involved, all seems quite straight forwards.
kind regards,
Shaun.
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Shaun
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