Buying Something With Someone Else's Credit Card

jimbojambo1234

I am a sole trader and am planning to purchase a computer for use with my business. I plan on buying it with one of my parent's credit cards and I will pay them back (I don't have a credit card). I live with them and work from home. Am I able to do this and still put this computer down as a business expense?

Elaine_Wilson

Yes.

For income tax purposes it is the nature of the expense which is important, not how it is paid. It would be a good idea to document the transaction in detail in case you are asked about it some time in the future.

If you are registered for VAT and intend to make a reclaim then you should ensure the invoice is made out to you. It can still be paid with someone else's card, though.