Business Expenses (forced to use personal Creidt to pay for Business Travel)

stee1y0

Hi Money Saving Experts


I wish to make a enquiry into the business expenses system that employers use.


I am a senior manager within a global business that will not give its employees access to a company credit card. Instead they wish you to pay for all travel expenses using your personal credit card and then claim back expenses. I know some people may think this is a bonus as they can gain financial bonuses through using their own credit cards. However, as an ex-military officer, I was taught that making financial gain from business travel was fraud. (this may be different now I'm working for a private company)


The crux of my complaint with this comes down to the allowance of personal credit. I have no credit cards and as such do not wish to be forced to take one out just for business expenses. If I do this then in the eyes of other creditors I have used some of my credit allocation (Experian and Equifax show available credit based on personal circumstances). As I am saving for a mortgage I don't want to use up any credit. (I know using a credit card and paying it off will increase credit rating).


My issue/enquiry really stems from the fact that my employer refuses to issue company credit cards and instead expects its employees to take out personal credit to aid the business, with no return on my investment.


Is this right? Is there any piece of legislation that I can point my company to that shows they must offer an alternative to using my own personal financial credit.


Thank you for your help in advance

Southend1

Can't you pay cash?

Another_not_new_user

It is not uncommon to be reimbursed for business expenses after the event. In fact it is the norm. How you "pay up front" is your business. So you do not have to take out a credit card. As pointed out, you may pay cash - or debit card. And no - there is no legislation that says the employer must give you a company card.

zagfles

stee1y0 wrote: »

Hi Money Saving Experts


I wish to make a enquiry into the business expenses system that employers use.


I am a senior manager within a global business that will not give its employees access to a company credit card. Instead they wish you to pay for all travel expenses using your personal credit card and then claim back expenses. I know some people may think this is a bonus as they can gain financial bonuses through using their own credit cards. However, as an ex-military officer, I was taught that making financial gain from business travel was fraud. (this may be different now I'm working for a private company)

Not in terms of points, airmiles, CC bonuses etc. See http://www.hmrc.gov.uk/manuals/eimanual/eim21618.htm

The crux of my complaint with this comes down to the allowance of personal credit. I have no credit cards and as such do not wish to be forced to take one out just for business expenses. If I do this then in the eyes of other creditors I have used some of my credit allocation (Experian and Equifax show available credit based on personal circumstances). As I am saving for a mortgage I don't want to use up any credit. (I know using a credit card and paying it off will increase credit rating).


My issue/enquiry really stems from the fact that my employer refuses to issue company credit cards and instead expects its employees to take out personal credit to aid the business, with no return on my investment.


Is this right? Is there any piece of legislation that I can point my company to that shows they must offer an alternative to using my own personal financial credit.


Thank you for your help in advance

Ask them for an advance?

getmore4less

Ask for cash advances.

There is no problem benefiting from CC cash back, point, quidco, topcashback, air miles, hotel benefit programs, from using your own funds to pay for things unless the company policy has restrictions.

Just claim the expenses in line with the company policy ASAP so you get the money back.

Don't be fooled by the credit thing and mortgages, a few £K credit limit used and paid off every month won't cause a problem.

NO legislation, the use of personal cards reduces the company exposure to fraud as the employee is liable,

Often company cards are issued as personal accounts anyway so you are in the same position of owing the money if the company does not pay.

flashg67

A credit card paid off every month, so, in effect a nil balance 'most' of the time, shouldn't affect your available credit?

A 'cashback' credit card could see you make a small 'profit' which wouldn't be seen as fraud IMO.

Agree, it is the norm and annoys me too!

getmore4less

Once you get your mortgage you get a 0% purchase credit cards and start Stoozing your expenses.

Fraud is where you claim more than you spend like having your bar bill included on the hotel bill(not itemised) if the company does not normally pay those doing packages is not.

When I used to travel I nearly always found better flights and hotels than our travel department for lower prices sometimes it meant a few extra days at the destination over weekends but still cheaper.

marlot

If your company is reasonably prompt in paying expenses, you could well find it comes to you before the credit card payment is due.

Most companies (even the Civil Service) pay expenses after the fact. I think its time to come into the modern world and get a credit card!

oscarward

Choose a credit card that offers a reasonable period before interest becomes due.


I use a TSB card to put all my business expenses on, put an expense claim in at the end of the month and pay the card bill in full at the end of the next month.


i.e. expenses accrued 1-30th. Claim paid 10th next month, CC bill paid 30th next month.


No interest paid to CC company.


Some CC companies have different ways of charging interest so read the small print.

tea_lover

Every company I've ever worked for has had this system, it's perfectly normal.

[Deleted User]

Same here, I've only ever known 'pay for it yourself then claim back' process.

It should improve your credit rating if anything - showing you are able pay back your debts should increase your credit limits and thus show you are 'worthy to lend money to'. Instead of 'using up a credit allocation' you are infact increasing your credit allocation by paying it back immediately. My credit limit went from £500 to £10k quite quickly after I started travelling for work in my first job. I never had more than a grand or so of expenses and the policy was that if they were late paying your expenses you could claim the credit card interest costs.

I don't consider benefiting from this (in the form of points/cashback) as fraud since you are providing your own 'money lending' service to your employer.