Business Expenses Paid from Personal Account- Evidence

[spikky]

Hello,

I've been reading numerous posts on Director's Loan and the advice on here.

As a Director, I've invested in 2 ways

1. Expenses paid directly from Personal cards (direct debits, online payments etc for business)
2. Money transferred from Personal Account to Business Account

Both these sources are recorded as Director's loan in my accounts.

Showing transfer of funds from Personal Account to Business Account and marking each transaction is achievable as these are bigger amounts and identifiable.

My question how do I evidence expenses/direct debits paid directly from my Personal Bank cards for business? Do I have to retrace transactions to 3 years in my Personal Account? Often these appear as abbreviated listings on bank statement and are smaller amounts but do account to a few ££££s over the years.

Has anyone been in this situation? Any advice?

Cheers,

S

[naya]

Hi,
I guesss you have 3 year financial accounts that would summarise all the expenses and its source.
It is better to look at your annual accounts and check with your accountants, in my opinion because all your expenses paid from your personal account should have been recorded as expense on 1 side and a director's loan on the other side on the account statements. Thanks,

[tier1in2014]

In order to claim investment points you have to option share holder or directors loan . Directors loan should appear in your accounts with your name as required by HO . Money can stay there in your account does not have to be invested . But as you have done few investments from your personal account that might will not be counted as investments . All the investments has to be from company account I believe in order to claim the points either Directors loan or Share holder method . Wait for zimba's input on it .

[awan905]

Hello,

I've been reading numerous posts on Director's Loan and the advice on here.

As a Director, I've invested in 2 ways

1. Expenses paid directly from Personal cards (direct debits, online payments etc for business)
2. Money transferred from Personal Account to Business Account

Both these sources are recorded as Director's loan in my accounts.

Showing transfer of funds from Personal Account to Business Account and marking each transaction is achievable as these are bigger amounts and identifiable.

My question how do I evidence expenses/direct debits paid directly from my Personal Bank cards for business? Do I have to retrace transactions to 3 years in my Personal Account? Often these appear as abbreviated listings on bank statement and are smaller amounts but do account to a few ££££s over the years.

Has anyone been in this situation? Any advice?

Cheers,

S

1. Expenses paid directly from Personal cards (direct debits, online payments etc for business)..........HO doesnt accept this investment, please top up your director loan by directly transferring the money from personal account to business account.

[zimba]

My question how do I evidence expenses/direct debits paid directly from my Personal Bank cards for business? Do I have to retrace transactions to 3 years in my Personal Account? Often these appear as abbreviated listings on bank statement and are smaller amounts but do account to a few ££££s over the years.

As others also suggested, money spent from your personal account will NOT be accepted as part of director's loan for award of points under Tier 1E visa. In the world of business this is acceptable, however in the world of immigration rules it is NOT. You must supply evidence that money you are claiming points for was FULLY transferred to your company or else it will not be accepted. You need to top up the rest if you want to avoid refusal

[spikky]

The direct debits to Personal cards were from 3 years ago when my business bank cards were not issued.

These are recorded as expenses in Annual accounts. Its not that big a sum but its still business expenditure. It's a shame if its not going to be counted. Topping up money in Business account is not that easy! But will figure out a way. Thanks.

[mohsensari]

Be careful, get zimba's advise in account ,otherwise you will face with strong refusal and no body can get you out from it.

[zimba]

These are recorded as expenses in Annual accounts. Its not that big a sum but its still business expenditure. It's a shame if its not going to be counted.

It will not be accepted as I noted above

[spikky]

Thanks all for the heads up. A good warning alert indeed. It's not a big amount around £2k will 'top up' business account as suggested. Many thanks for all the help.