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Director Biz bank card & vehicle fuel query

Biz1 owns vehicle, Biz2 bank card used for fuel. User is Director of Biz1 & Biz2. Assume drawings?

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I'm just wanting to clarify my thoughts. 

Director is director of a number of businesses. Biz 1 owns the vehicle but Biz 2 bank card has been used to put fuel into Biz 1 vehicle for purposes of business travel for Biz 2. I would assume that as the vehicle is not owned by Biz 2 that the Director cannot use the bank card of Biz 2 to put in fuel for Biz 2 business purposes and as such the amount spent on fuel should be put into Director's drawings. Is my assumption correct or is there some rule that I am not aware of under these circumstances?

Any help would be appreciated, many thanks.

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28th Mar 2019 14:30

As you call the person 'Director', I assume that the two businesses are limited companies. If that is the case, we have Biz2 spending money on its own business purposes. The ownership of the vehicle is not relevant in this context- although if there is private usage of the vehicle or the fuel is used for private mileage, a benefit in kind charge may arise.

Drawings, btw, is a sole trader concept. For a company, reimbursement of genuine business expenses is fine. Otherwise, ff a director is receiving money from a company, it's probably salary (in which case PAYE must be operated) or a loan (which may well fall into PAYE if it's not repaid).

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By msmcr
to paul.benny
29th Mar 2019 12:07

Thanks for your response and clarification. Very helpful.

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