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  • FIRST POST
    • obay
    • By obay 8th Nov 17, 10:16 AM
    • 452Posts
    • 329Thanks
    obay
    Stoozing question
    • #1
    • 8th Nov 17, 10:16 AM
    Stoozing question 8th Nov 17 at 10:16 AM
    Once I have paid off all my current borrowings I want to see if I can stooze or learn about this.

    I run a company - I can setup an invoice to be taken from the card - Deposited into my personal bank account that way I'd be able to draw 100% of funds from the cards and placed into a savings account almost instantly...

    It wouldn't be routing through my business bank account (so i'd miss corp tax). Would this be an effective way of stoozing?

    This is just a question I don't know what the outcome will be -- please be light and easy!!!
    1/12/16 - £152,599.00
    11/11/17 - £145,990.00
    Two Credit agreements to pay off - £13653! (inc interest).
    Sofa (DFS) (0%)£923/£923 - Paid off 7th November!
    Barclays Boiler (18.9%!)£400/£3021.36
    Barclays Car (5.99%)£0/£8,832.37
Page 1
    • rydlloyd
    • By rydlloyd 8th Nov 17, 2:52 PM
    • 4 Posts
    • 1 Thanks
    rydlloyd
    • #2
    • 8th Nov 17, 2:52 PM
    • #2
    • 8th Nov 17, 2:52 PM
    Do you not suffer a transaction fee for processing?
    • obay
    • By obay 8th Nov 17, 2:59 PM
    • 452 Posts
    • 329 Thanks
    obay
    • #3
    • 8th Nov 17, 2:59 PM
    • #3
    • 8th Nov 17, 2:59 PM
    Do you not suffer a transaction fee for processing?
    Originally posted by rydlloyd
    Not currently 0% processing at the moment for our business.

    Thanks!
    1/12/16 - £152,599.00
    11/11/17 - £145,990.00
    Two Credit agreements to pay off - £13653! (inc interest).
    Sofa (DFS) (0%)£923/£923 - Paid off 7th November!
    Barclays Boiler (18.9%!)£400/£3021.36
    Barclays Car (5.99%)£0/£8,832.37
    • seatbeltnoob
    • By seatbeltnoob 8th Nov 17, 3:04 PM
    • 270 Posts
    • 67 Thanks
    seatbeltnoob
    • #4
    • 8th Nov 17, 3:04 PM
    • #4
    • 8th Nov 17, 3:04 PM
    sounds illegal.

    There are loads of laws governing how money kept in the business. Revenues must go into the business bank account.

    I am not 100% sure about this as I am not an accountant. I asked my accountant if I can get a personal credit card and use it as a business credit card because of the cashback deals and the fact that I buy a lot of my supplies through credit card.

    Business credit cards do not offer cashback incentives the way consumer credit cards do.

    The accountant said I cannot do this. I can do expensive claims for items I've bought through the credit card, but I cannot exclusively use it as a business credit card.
    • Candyapple
    • By Candyapple 10th Nov 17, 11:31 AM
    • 2,495 Posts
    • 1,862 Thanks
    Candyapple
    • #5
    • 10th Nov 17, 11:31 AM
    • #5
    • 10th Nov 17, 11:31 AM
    Once I have paid off all my current borrowings I want to see if I can stooze or learn about this.

    I run a company - I can setup an invoice to be taken from the card - Deposited into my personal bank account that way I'd be able to draw 100% of funds from the cards and placed into a savings account almost instantly...

    It wouldn't be routing through my business bank account (so i'd miss corp tax). Would this be an effective way of stoozing?

    This is just a question I don't know what the outcome will be -- please be light and easy!!!
    Originally posted by obay

    What do you mean by this? With a money transfer card, all you have to do is nominate which bank account you want the funds to go into and voila.

    Also, please share with everyone where this no fee for money transfers card is from, I'm sure everyone would love to know.

    Sounds like you don't really understand what it is you are trying to do.

    https://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • molerat
    • By molerat 10th Nov 17, 6:55 PM
    • 17,480 Posts
    • 11,707 Thanks
    molerat
    • #6
    • 10th Nov 17, 6:55 PM
    • #6
    • 10th Nov 17, 6:55 PM
    also, please share with everyone where this no fee for money transfers card is from, i'm sure everyone would love to know.
    Originally posted by candyapple
    mbna ? ..................
    www.helpforheroes.org.uk/donations.html
    • Somerset La La La
    • By Somerset La La La 11th Nov 17, 8:05 PM
    • 446 Posts
    • 139 Thanks
    Somerset La La La
    • #7
    • 11th Nov 17, 8:05 PM
    • #7
    • 11th Nov 17, 8:05 PM
    sounds illegal.

    There are loads of laws governing how money kept in the business. Revenues must go into the business bank account.

    I am not 100% sure about this as I am not an accountant. I asked my accountant if I can get a personal credit card and use it as a business credit card because of the cashback deals and the fact that I buy a lot of my supplies through credit card.

    Business credit cards do not offer cashback incentives the way consumer credit cards do.

    The accountant said I cannot do this. I can do expensive claims for items I've bought through the credit card, but I cannot exclusively use it as a business credit card.
    Originally posted by seatbeltnoob
    Buy a pack of (non-expensed!) crisps with it then!

    As long as you document the expenses, and have the audit trail showing said items are in use in your business, they can't get funny with you.

    Accountant probably doesn't want the extra work of checking your expense claims are legit.....

    Credit Card provider certainly wouldn't like it if you used it solely for business either, but that's not your Accountant's problem!

    Unless there's a compelling reason not to use a personal cashback card - and I can't think of one, other than extra documentation leg work in 'claiming' the expenses back from the company - I'd do it until the card company say no.

    Afterall, that is what Curve etc are marketing themselves on - it's supposed to be purely business spend (as they keep reminding me....), but they take personal credit cards.....

    Assuming you're a ltd company? Doing it that way you're obviously personally taking on the credit risk of your business being unable to repay (maybe that's what the Accountant is concerned about??). If you bought the items using the ltd company credit card, but come into money troubles, then there's no comeback on you personally - if you go the personal CC and claiming expenses, you're still liable personally even if you wind the ltd up.

    OP's idea DOES sound dodgy though - if you're setting up an invoice through the company, it has to be related to goods/services provided, you can't do it to somehow get this money transfer to go through then make the invoice disappear..... (well you can, but auditors won't be happy!)
    Last edited by Somerset La La La; 11-11-2017 at 8:08 PM.
    Ex-Bankrupt, Discharged 09/2015
    Capital One - Jul 2016, £3,750 Never ending 0%....
    Aqua Reward (0.5% Cashback) - Nov 2016 - £1,950
    Vanquis Chrome 24.7% - July 2017, £1,000
    Car Loan - Sept 2017 - £15k outstanding, early settlement = £10k....
    Rebuild for Mortgage (10/2018)
    • Sarastro
    • By Sarastro 11th Nov 17, 10:24 PM
    • 339 Posts
    • 273 Thanks
    Sarastro
    • #8
    • 11th Nov 17, 10:24 PM
    • #8
    • 11th Nov 17, 10:24 PM
    Once I have paid off all my current borrowings I want to see if I can stooze or learn about this.

    I run a company - I can setup an invoice to be taken from the card - Deposited into my personal bank account that way I'd be able to draw 100% of funds from the cards and placed into a savings account almost instantly...

    It wouldn't be routing through my business bank account (so i'd miss corp tax). Would this be an effective way of stoozing?

    This is just a question I don't know what the outcome will be -- please be light and easy!!!
    Originally posted by obay
    Pretty sure that's fraud...you can't create fake invoices even if it your own company.
    • ihateconmen
    • By ihateconmen 19th Nov 17, 10:06 AM
    • 2 Posts
    • 0 Thanks
    ihateconmen
    • #9
    • 19th Nov 17, 10:06 AM
    • #9
    • 19th Nov 17, 10:06 AM
    You have not explained yourself at all well but the main thing I picked up was:
    It wouldn't be routing through my business bank account (so i'd miss corp tax). Would this be an effective way of stoozing?
    Corporation tax has nothing to do with the means of banking receipts. As I do not fully understand what you are talking about setting up, I cannot deduce whether the "receipt" is taxable or not. However, If a receipt is taxable, then routing it through a PA to avoid CP is definitely going to be considered tax evasion, as opposed to avoidance.

    To previous contributors ( I despair at folk making claims/statements without having a clue):
    Business receipts do not HAVE to be paid into a business account, but they must be accounted for.
    It is not illegal to use a personal card for business use, although it may be against the T&C's of the CC company. I ran a small company for over 20 years and always used a specific personal CC cards exclusively for business. We used a few cards,used for different categories of expense. It is true that I ran the risk of being personally liable for business debts, but business CC's carried annual fees (at least they did 5/6 years ago)
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