Spending 15k a month

Anonmagee

I am somewhat reluctant to rock the boat with the employer given that all employees use this current system and have done for over 20 years.

We are reimbursed as often as we like and payment is received on the same day we submit receipts.

When I first started I was submitting receipts every £200. This grew tiresome and then my expenses started to grow became unrealistic.

Currently I submit receipts once a week. Usually to the tune of about 3-6k. Occasionally with a larger transaction.

How does one run a charge card correctly?

lovinituk

Those 2 accountants you mentioned on the other thread that your boss employs sound dodgy as hell!! What with all your employment benefits not being declared it appears your boss could be up to his neck in tax fraud.

planteria

jonesMUFCforever wrote: »

My suspicions here - the boss is avoiding a large turnover on his/her business account and saving a lot of money in bank charges.
Ultimately OP's bank may ask where all this money is coming from - his account may be ''chosen'' for ML checks.

perhaps you are right.. but Anonmagee can also use this to their advantage.

i would certainly be using Nectar, and get a clubcard, and i would certainly not avoid using more than 50% of your credit limit. i would max it, pay it off, max it, pay it off, max it, pay it off....all within each month.. turning the turnover into activity would be my aim.

planteria

i do understand others' caution re. your employment. i will leave you to assure yourself that all is fine, and continue down the line of turning this turnover to your advantage.

Anonmagee wrote: »

How does one run a charge card correctly?

a chargecard automatically 'charges' your current account with the full balance each month, rather than having the choice of how much you want to repay when using a credit card.

i would guess that Amex will initially reject an application, but as per above, perhaps on appeal they will let you have one. ideally, i would get hold of an Amex Cashback (credit) card if you can.

InsideInsurance

Armorica wrote: »

I'm amazed this hasn't been flagged up by your bank as money laundering already. Most companies operating legally don't operate through the current accounts of their employees.

Its the OP's past that is driving it through his current account rather than a personal credit card.

I would be much more surprised if a bank did consider it money laundering. These are presumably expenses and so split over many transactions not just 1 transaction for £34k a month. Secondly the bank will just see one or two transactions a month coming into the account from the employer which will be salary/ income and expenses.

Arguably my current account is even worse as the ~£10k or so a month of my business spending plus on top of that all my personal spending goes onto my personal AmEx card and so the bank just sees, say £12k go out to AmEx and then £10k expenses come in and £Xk salary come in.

Been doing it for almost a decade with my bank and never had it queried

Personally I was offered a corporate card when I was PAYE but I could make much more out of the deal by using my personal card than the company card so always declined. Yes you are arguably taking on a credit risk that your employer couldnt afford to repay you but I've always worked for multi national insurers or my own company so have been comfortable the risk is low.

planteria

good post II..
agreed that Anonmagee's bank shouldn't be alarmed. and even if they were, he can explain that all is in order.
that said, a credit card with a £15k+ limit, enabling Anonmagee to spend a full month's quota without clearing mid-month, would take many folks some time to build up.

Anonmagee

Thank you all for your replies thus far.

I will max out my card and pay it off every week. Perhaps I can speak to capitalone to clear my balance by direct debit weekly. Has anyone else done this before?

Failing that I'm sure it will only take 2 minutes a week to pay it.

Similar to those working for multinationals I consider my employer to be of very low risk. I also take confidence in the fact I am reimbursed the same day receipts are submitted.

So long as I pass the mortgage affordability criteria I imagine I will not mention what is missing on my p11d. I think I would have a relatively strong argument given that we have 2 accountants who deal with all of this AND the fact my contract states I get a net salary and all tax is taken care of by the employer. Perhaps I'm just rather naive.

It's a shame companies like Amex have black and white criteria with no manoeuvrability when it comes to eligibility.
It's a greater shame I don't have a time machine to go back and not get a ccj!!!

lovinituk

Anonmagee wrote: »

Similar to those working for multinationals I consider my employer to be of very low risk.

Apart from the fact that he appears to be a serial tax fraudster

Anonmagee

Well they employ 2 accountants to look after all of these sort of affairs. If there is anything amiss it will be due to their negligence rather than the employers intentions. Although it will be the boss' neck on the line not theirs I suspect.

Although it's probably fixable by throwing money at Hmrc haha the biggest fraudsters of all.

planteria

Anonmagee wrote: »

I will max out my card and pay it off every week. Perhaps I can speak to capitalone to clear my balance by direct debit weekly. Has anyone else done this before?

no. you won't be able to do that. DDs are monthly only. but paying you CapOne card by Faster Payments from your current account is no problem at all. have a DD set up for the full amount and then pay it all manually by FP anyway.:)