Can I pay money into a bank account using a credit card?

KLM2013

I'm in the process of buying a new car. The garage will only take up to £4000 on a credit card, so I am paying 11,000 from a bank account. How do I transfer this debt onto a credit card so I can take advantage of 0% and put the money back in my account? I'm reluctant to pay the whole lot from my bank account as it'll put me over the higher tax bracket if it's all paid back this year. Hope that makes sense!

grumbler

KLM2013 wrote: »

... I'm reluctant to pay the whole lot from my bank account as it'll put me over the higher tax bracket if it's all paid back this year. Hope that makes sense!

Not to me, but see http://www.stoozing.com/cards/super-balance-transfers.php

dzug1

What's using your bank account have to do with your tax bracket? Nothing for normal mortals.

KLM2013

I've taken the funds from my business account, so it's classed as a dividend. Ideally, I would like to pay it back over a few years, rather than in a lump sum, otherwise I will have already drawn out a large dividend which will be taken into account with my personal tax.....

KLM2013

Grumbler....perfect...that's just what I was after Many thanks

[Deleted User]

MBNA credit cards allow balance transfers to your bank account.

bigadaj

KLM2013 wrote: »

I've taken the funds from my business account, so it's classed as a dividend. Ideally, I would like to pay it back over a few years, rather than in a lump sum, otherwise I will have already drawn out a large dividend which will be taken into account with my personal tax.....

Dividend wouldn't work in this way, do you mean a company or directors loan?

Dividend would generally just save the national insurance element, but if you repay the. That would be a loan, have you spoken to your accountant about this?

gb12345

bigadaj wrote: »

Dividend wouldn't work in this way, do you mean a company or directors loan?

Dividend would generally just save the national insurance element, but if you repay the. That would be a loan, have you spoken to your accountant about this?

I agree - if you've taken a dividend then it will potentially be taxed by you as personal income (if it when added to all the other dividends you take during the year puts you in the HRT bracket).

You really need to speak to your accountant about what you are doing and the best way of doing it.

happycamel_2

It won't work from a tax point view, your only option is use the credit card part as a director's loan and the business buys the car but then the business is responsible for the car, running costs etc and if it's used personally then Benefits In Kind kicks in anyway.