A couple of issues spring to mind. If she works for the company and doesn't get paid then you are in breach of National Minimum Wage legislation.( Doesn't apply to you as a Director-assuming its a Ltd co) -HMRCs view made by an inspector recently.
My understanding is that you can only pay expenses for someone who is on the payroll.
My question is also how do you process the payments she has made using the company's card? As not all of this would be for the benefit of the company?
-- Edited by Cheshire on Tuesday 11th of November 2014 08:07:49 PM
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
If your Mrs doesn't mind running about for you/the company, that's fine, just put the mileage as a credit to your capital/director account as "capital introduced - mileage" and post the debit to mileage claims, or rename 7300.
Where she used the company card for fuel, that should also go down as your drawings. The mileage is the offset to that.
-- Edited by FoxAccountancyServices on Thursday 13th of November 2014 07:19:38 PM
PS. If she has no other job, you might want to think about giving her a wage through the company anyway. That would give you some tax savings, and use her personal allowance. Might even mean you don't have to pay for that next pair of shoes! Double bonus!
