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Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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As a director of a very small ltd company to ease cash flow

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as a director of a very small ltd company to ease cash flow over the past 3-4 yrs I have borrowed on my personal credit cards to put money into the business and then paid these off through the business on a monthly basis - the cards although in my name were kept separate from personal use and only used for business purposes. is it right that these should go through the directors pot and increase the tax I have to pay when they were company loans.
Thanks for your question - I am Sam and I am one of the UK tax experts
Then you should have reported these to HMRC - be creating a P11db return at the end of the tax year and provided yourself with a P11d -
Then as these costs were wholly and exclusively in the performance of your duties to the company (I assume) then make a S336 claim to HMRC so that you are not charged tax on the amounts - as all business use.
But as you have been seen to take money out of the business for personal use - and the credit card is in your personal name it just dots the i's and crosses the t's for HMRC's benefit.
And I would also be inclined to credit the directors loan account each time a purchase is made in this way which then is set back to zero each time the company pays "off" the credit card bill
This reports the fact this took place every which way - and most importantly prevents you being charged tax on the costs!
Let me know if you require any further assistance with this matter.
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