Using Personal Credit Card For Business Use

bartsimpson

Can I use my personal virgin credit card to pay for advertising for my business (I own a ltd company).

I want the air miles basically, so instead of paying for my online advertising straight from my business bank account, I want to add funds from my business account to my virgin credit card (which has a small limit), and then use the virgin card to pay for all my business advertising, thereby building up air miles.

So basically every single transaction on my virgin card would be a business transaction (there are no personal transactions mixed in because I won't use it for anything else) - is this ok? Surely the credit card would then be classed as a business card despite it being in my name, because I could prove that all transactions made on it were business transactions.

Thanks.

jiggy2

i would recommend that you get the advertising invoices in the name of the company. if you pay using your personal credit card for a business expense it is equivalent of you introducing funds into the company. if you pay the credit card through the company you are effectively drawing money out and hence the net effect is £0.

bartsimpson

Thanks Jiggy, I do get all invoices in the company name.

If I had a large credit limit, I would be able to simply pay off what had been spent on the card each month from the business account and presumably that would be easy to show on the accounts.

However due to the small limit, I have had to add funds to the personal credit card from the business account before they have been spent (ie my credit card is in credit by about £10k at the moment).

I am worried that because I have moved £10k from my business account to a personal credit card (which I will spend solely on business advertising, not personal use), this will be classed as 'dividends' - which I DO NOT want to happen, because I have already taken my maximum allowance for the yr (below the tax threshold).

Bloke_with_a_simple_life

Why not take out a business card which has got an airline reward scheme attached to it? BMI have a tie in with someone (MBNA I think) where you can earn rewards on a BMI diamond CLub that can be used on Star Alliance flights.

Try this page for a look http://www.mbna.co.uk/business/index.html

For BMI info http://www.flybmi.com/bmi/en-gb/frequentflyers/frequentflyers.aspx