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Reimbursed expenses

Hi,

I have a business which involves alot of travelling. I am a sole trader, and act as a middle man for a US based company. My question is that I pay for business related expenses, such as hotels, parking, taxis, misc purchases, telephone, which I am reimbursed back. However I also use the US companies credit card to pay for things like business flights, fuel and high expenses, which of course are the companies expenses. My question is that should these expenses be included in my accounts, shown in turnover and expenses? I know expenses which I have incurred and reimbursed have to be shown in turnover and expenses, but i'm not sure about the expenses incurred by the company.

Any suggestions please??

Thank you

Shane

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I'd not include them

Off the top of my head, by allowing you to use their own payment facilities you are acting as their agent when you pay for something, ie the transaction is never owned by you and so should not appear in your records.

What a great client though, it's got me thinking, I'm going to suggest to some of my clients that they let me have a credit card, not sure what I'd use them for but Christmas is around the corner!

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Reimbursed expenses

Any more thoughts by anyone else please?

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Reimbursed expenses

One more question - What if the reimbursed expense, in particulor fuel has a private element of say 20%. Wouldn't it be wrong to not include the expense in the accounts, as you will not be able to do an add back of 20% in this case.

 

Please let me know

 

Thank you

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Indeed

Hi Shane -I suppose more to the point is how does the US company feel about you using their card for personal expenses?  What if you used it in Sainsburys?

If they are OK about it then yes it is a taxable benefit (even as self employed) and so all you'd do is add the personal element to the turnover in your accounts.

Again, wish my clients would let me do this.

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