How Quickly Should I Claim My Expenses?

[Zakalwe]

Hello,

I have a Ltd. company, do freelance work for a few clients and pay myself a fixed (and reasonable) salary each month. Profits are left in the company account for business purchases and an annual dividend.

I usually add up all my business expenses at the end of each month and claim them in one go. However, since the beginning of September I've spent around £700 (on computer equipment and a conference booking) which I can't really afford to be without for the rest of the month.

Having just paid myself my August expenses the other day, would it be considered OK by the Powers That Be for me to claim these September expenses back straight away rather than waiting until the end of the month?

Cheers
Simon

[Sockpuppet]

Yes. Its your company you can run it how you want. You can pay yourself daily if you want.

[blacjac]

It might be simpler to declare a directors loan till you get next months expenses.

[VectraMan]

Yes. Its your company you can run it how you want. You can pay yourself daily if you want.

WHS. I've done that several times when making specific purchases. And when I had particularly high travel expenses I'd pay them twice a month. No reason at all why it has to be monthly (though you should probably pay them before the company year is up).

[pmeswani]

Hello,

I have a Ltd. company, do freelance work for a few clients and pay myself a fixed (and reasonable) salary each month. Profits are left in the company account for business purchases and an annual dividend.

I usually add up all my business expenses at the end of each month and claim them in one go. However, since the beginning of September I've spent around £700 (on computer equipment and a conference booking) which I can't really afford to be without for the rest of the month.

Having just paid myself my August expenses the other day, would it be considered OK by the Powers That Be for me to claim these September expenses back straight away rather than waiting until the end of the month?

Cheers
Simon

There is no hard and fast rule to when you can claim expenses. As long as they are legitimate expense, and you have a receipt to prove it, the you are entitled to claim it as and when you need to. I submit my expenses on a weekly basis to my Accountant and take the money out as and when I need to. Sometimes weekly, sometimes bi-weekly, sometimes tri-weekly and sometimes monthly. As long as my Accountant approves it, I am ok. I am sure you are an honest enough person, so do what you need to do in order to recover a business expense.

However, if you are looking for an advance to cover the cost of a future purchase, then you may need to declare it as a Director's loan or as a expense advance (or whatever the equivelent is). You may want to start looking at setting up a credit limit with your suppliers so that you can pay them direct from your business rather than from your personal account.

[Zakalwe]

Thanks for the advice everyone - I'll reimburse myself now with a clear conscience

This should be a one off as I don't normally need to spend anywhere near that much on expenses.

Cheers
Simon

[BolshieBastard]

Legitimate expenses can be claimed straight away if you want.

A further point to note is that there is nothing in current legislation which says how often you may take a dividend from your company. However, if you take a divi say every month, HMRC may try and argue you are taking (the divi as) a wage.

[pmeswani]

Legitimate expenses can be claimed straight away if you want.

A further point to note is that there is nothing in current legislation which says how often you may take a dividend from your company. However, if you take a divi say every month, HMRC may try and argue you are taking (the divi as) a wage.

Even if it is backed up with a divi voucher? Can't we argue that we are trying to be sensible with the company profits to ensure that we have enough money to pay the taxes?

[wantacontract]

I do it monthly

[scooterscot]

I've spent around £700 (on computer equipment and a conference booking) which I can't really afford to be without for the rest of the month.

I'd be using the business debit card for such things from the off. For one there's none of this claiming business at the end of the month. 2nd those are major purchases for a company to except of an employee.