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Corporate expenses

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24 October 2007

Issue: 4131 / Categories: Forum & Feedback , IR35

I operate a personal service company which is outside the scope of the IR35 rules. There are generally very few expenses and these are usually paid for personally with subsequent reimbursement by the company (and a P11D entry, where appropriate).

The main 'outgoings' of the company are VAT and corporation tax. For administrative convenience I usually effect these payments through my personal bank account.

Where the company is simply reimbursing me for the outlay I cannot see any tax difficulty. However is there a difference if the company advances me the cash before I pay it over to HMRC? I do not intend to (and do not) use the funds for my personal purposes.

I simply hold them on trust for the company. Consequently I would not have thought that I enter into the realms of close company and beneficial loans.

Do readers agree with me?

Would it make any difference if the funds were advanced to a designated account so that they are not mixed with any personal funds? In either case how should I account for the interest arising?

I would appreciate readers'...

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Corporate expenses

© Copyright LexisNexis 2024. All rights reserved.

24 October 2007

I operate a personal service company which is outside the scope of the IR35 rules. There are generally very few expenses and these are usually paid for personally with subsequent reimbursement by the company (and a P11D entry, where appropriate).

The main 'outgoings' of the company are VAT and corporation tax. For administrative convenience I usually effect these payments through my personal bank account.

Where the company is simply reimbursing me for the outlay I cannot see any tax difficulty. However is there a difference if the company advances me the cash before I pay it over to HMRC? I do not intend to (and do not) use the funds for my personal purposes.

I simply hold them on trust for the company. Consequently I would not have thought that I enter into the realms of close company and beneficial loans.

Do readers agree with me?

Would it make any difference if the funds were advanced to a designated account so that they are not mixed with any personal funds? In either case how should I account for the interest arising?

I would appreciate readers'...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

Issue:

4131

Categories: Forum & Feedback [1] , IR35 [2]

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