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Does it matter if I use a personal credit card?

Within an LLP does it matter if I make business purchases using a personal credit card?

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The LLP part maybe irrelevant but does it matter to HMRC if business purchases are made using a personal credit card and/or personal back card rather than using the business account or credit card?

Obviously they accept receipts etc for personal expenses but wondering if larger business purchases are ok like this. At the moment I'm keeping the company bank account very simple and have been making all stock purchases personally and then providing the receipt/invoice (showing full vat breakdown etc). 

From a logical point of view I don't see why it should matter as if needed proof of the purchases would be able to be shown.

For anyone wondering why a good example is my personal Amex card gives me benefits which makes it preferable to put as many personal and business purchases on there as possible.


Thanks in advance




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12th Dec 2018 12:10

Might be, might not be. Have you asked your accountant?

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12th Dec 2018 12:17

You are possibly opening your personal bank accounts/credit cards to HMRC inspection in the event of any enquiry into the LLP accounts by HMRC.

If partnership transactions were not routinely through your personal accounts HMRC would really need to show good justification for viewing same and in such a scenario for requesting copies of all personal statements.

You are doing their job for them by allowing them free access to your private banking records in the event of an enquiry.

I like clients to put business transactions through business accounts and private transactions through private accounts.

If these transactions are not being repaid to you and nobody is checking your private accounts (determining which are and are not business transactions) to ensure all included then if one invoice is mislaid/lost then there is no record in the LLP books it ever existed, tax relief on it is lost, that cost you money- I tell clients the same with cash purchases, there is no overarching record of the population, mislay a receipt it will be missed, hence why things like fuel cards with a monthly statement are excellent, yes you pay a fee but if all fuel etc purchased via fuel card you never do not include a fuel receipt in the books because it got lost.

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12th Dec 2018 12:33

In theory, it's fine, but it does compliucate your boookkeeping. If I were your accountant, I'd prefer you to keep your business affairs away from your personal stuff.

I also take DJKL's point that you're opening the door to HMRC to tramp through your Amex account. The risk of an enquiry might be small these days but you might like to weigh that risk against the tangible benefits you receive from Amex. Only you can decide whether that's worthwhile.

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to lionofludesch
12th Dec 2018 13:26

lionofludesch wrote:

In theory, it's fine, .


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to WhichTyler
12th Dec 2018 13:51

That would be an invoicing issue, not a payment issue.

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12th Dec 2018 13:50

Thank you all.
It was our bookkeeper that was keen to tidy things up and have everything through the company accounts.
Point taken about opening myself up to the HMRC for all my personal accounts.
I think I'll try and put everything through the business account and anything I can't for whatever reason I'll put through the AMEX card which is 99% business stuff anyway and give our bookkeeper the statement every month to file with all the other receipts and invoices.


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