Hi, if a director (also owner) of a company incurs some business expenses that he/she pays from a personal account, is it possible to use them as deductions for personal income tax (as opposed to deductions from business income for corporations tax)?
Thanks!
Replies (4)
Please login or register to join the discussion.
Probably not, depending on what the expenses indeed are.
The rules for allowable expenses are far more generous for a company / business than they are under schedule e (employment) where there are very few allowable expenses.
Does the company reimburse you for these expenses made?
Is the company vat registered?
Potential problems exist here - cam you provide further info?
The normal way of dealing with these situations is for the company to reimburse the employee and claim the expense as a deduction in its accounts. Why is that solution not being adopted here?