Expenses Question?

ButtermilkJack

Hey folks, I know I asked this recently but I didn't get a final response (or the response I was looking for...:D ) so I thought I'd throw it out to the floor again.

I'm a sole trader, if I pay for something on my personal credit card (for whatever reason), can I just write myself a cheque to cover it, or how does this work?

Thanks!

Hobart

ButtermilkJack wrote:

Hey folks, I know I asked this recently but I didn't get a final response (or the response I was looking for...:D ) so I thought I'd throw it out to the floor again.

I'm a sole trader, if I pay for something on my personal credit card (for whatever reason), can I just write myself a cheque to cover it, or how does this work?

Thanks!

Do you have a current account in the trading name of your company?

ButtermilkJack

Hobart wrote:

Do you have a current account in the trading name of your company?

Yep!

Hobart

ButtermilkJack wrote:

Yep!

Ok then. Write yourself a cheque against the amount. Keep the reference of your purchase, and a copy of the cheque, for accounting purposes. You do not need to put the cheque through as income, as the purchase was made for the company.

Just a tip. Get a company credit card for yourself. It makes it a lot easier for reconsiliation.

ButtermilkJack

Excellent!

I have a MasterCard now, but these were made at the beginning (company registration fees, web hosting etc...) before I got the credit card.

You're a star Hobart, just what I wanted to hear coming up to Christmas. A few extra shillings in the bank

Hobart

No bother. Just keep copies of everything for you accountant, and it should be plain sailing.

ButtermilkJack

Yes, I'm always very conscious of keeping everything, so I have every receipt etc all filed and recorded. Just wasn't sure about this part. Didn't want the taxman trying to give me a headache. :rolleyes:

Anyways, once again. Ta.

Jazzz

ButtermilkJack wrote:

Yes, I'm always very conscious of keeping everything, so I have every receipt etc all filed and recorded.

Do you make a backup photocopy of every receipt?

ButtermilkJack

No! Should I?

Jazzz

No, I don't think so... was just wondering

If you ever had a Revenue enquiry though, and therefore hand all your receipts over, it might be a good idea to keep photocopies of all receipts and documentation given to them.

Tenshot

ButtermilkJack wrote:

I have a MasterCard now, but these were made at the beginning (company registration fees, web hosting etc...) before I got the credit card.

Just a heads up: I have a feeling company registration fees are not claimable as expenses (they're your personal expenses, since you own the company that was being set up - not expenses of the company itself).

You might want to check with your accountant to be safe... perhaps someone else here knows for sure? It may only apply to limited companies.

ButtermilkJack

Tenshot wrote:

Just a heads up: I have a feeling company registration fees are not claimable as expenses (they're your personal expenses, since you own the company that was being set up - not expenses of the company itself).

You might want to check with your accountant to be safe... perhaps someone else here knows for sure? It may only apply to limited companies.

Cheers, thanks for that, I'll check it out. I should mention it was only a business name registration for €30.00 so I reckon it should be fine.:)

karangka

Just a friendly advice. Being a PQ accountant and a bookkeeper myself, I've seen many of the Revenue Audit. The Revenue nowadays don't select business based on turnover or size of business.

Make sure you keep a proper records. It is very important to write up your books on an ongoing basis for VAT, PAYE, etc.

Best of luck!

ButtermilkJack

karangka wrote:

Just a friendly advice. Being a PQ accountant and a bookkeeper myself, I've seen many of the Revenue Audit. The Revenue nowadays don't select business based on turnover or size of business.

Make sure you keep a proper records. It is very important to write up your books on an ongoing basis for VAT, PAYE, etc.

Best of luck!

Thanks for the word of warning. As above though, I reckon I will be fine. I'm quite good when it comes to expenses (ie: I don't try to squeeze anything through that shouldn't!), also making sure I keep every receipt etc from all transactions. I'm only a (part-time) sole trader so there is not a huge amount of paperwork etc. All I have is bi-monthly VAT3 forms at the moment. It's my first year so i haven't calculated any PAYE/PRSI yet. I'll get an accountant to do that in the spring sometime.
Thanks for the support!!

tomthevet

Paye / Prsi returns need to be submitted on a P35 form before 14th February

ButtermilkJack

tomthevet wrote:

Paye / Prsi returns need to be submitted on a P35 form before 14th February

For a sole trader? I thought PAYE was not due until October or November 2006 for year ended Dec 31 2005?

Culchie

ButtermilkJack wrote:

For a sole trader? I thought PAYE was not due until October or November 2006 for year ended Dec 31 2005?

Correct

ButtermilkJack

Phew

Anyway, just to update you all, I wrote the cheque and the money is now in my account helping me with my xmas shopping. All square!