Sole trader using personal credit card - vat/accounts

jamels2

Hi i help with my friends business dealing with phone calls and doing invoices and basic accounts. He is vat registered and aims to go limited soon.
A few questions:
1. Is it worth me doing a book keeping course
2. He wants to pay a big bill to a supplier with his personal 0% credit card, how to account for this and be able to claim the vat back?
3. Related to 2. Could he send a payment to his company using worldpay and list this as a loan then pay the bill with the business debit card?
Thanks

angryparcel

why does he not call the HMRC helpline who will give advice on this

00ec25

the very fact you have asked questions 2 & 3 shows you need a bookkeeping course, particularly the fact you are dealing with a VAT registered business and therefore must get it right. Ian Brady would look like a child minder not murderer in comparison to a being on the end of an HMRC VAT inspection if they uncover mistakes.

assuming the supplier's invoice is in the name of the friend's business then claim the VAT as normal. As a sole trader there is no distinction between the "personal" card and the "business" card since everything he does is simply "him" and is either demonstrably business or personal in nature. Obviously once he incorporates then it is different and loan accounts will matter.

angryparcel

HMRC used to run free day courses on the ins and outs of VAT etc.

martindow

angryparcel wrote: »

HMRC used to run free day courses on the ins and outs of VAT etc.

It seems to have moved online with webinars and lots of info linked from this page

https://www.gov.uk/government/news/webinars-emails-and-videos-on-vat

phill99

00ec25 wrote: »

the very fact you have asked questions 2 & 3 shows you need a bookkeeping course, particularly the fact you are dealing with a VAT registered business and therefore must get it right. Ian Brady would look like a child minder not murderer in comparison to a being on the end of an HMRC VAT inspection if they uncover mistakes.

assuming the supplier's invoice is in the name of the friend's business then claim the VAT as normal. As a sole trader there is no distinction between the "personal" card and the "business" card since everything he does is simply "him" and is either demonstrably business or personal in nature. Obviously once he incorporates then it is different and loan accounts will matter.

I disagree completely. He doesn't need to, nor should he go on a basic book keeping course.


What he needs to do is get a very good accountant and let the professional deal with all matters relating to accounting, VAT and tax returns.


It genuinely alarms me that people run businesses but have genuinely no idea how to operate business finances. No wonder so many businesses fold within 12 months of starting.


It is evident that the OP or his 'friend' are way out of their depth!

angryparcel

martindow wrote: »

It seems to have moved online with webinars and lots of info linked from this page

https://www.gov.uk/government/news/webinars-emails-and-videos-on-vat

My m8 registered for VAT a couple months ago and was offered a place on a day course. i told him to take a pilot case with him for all the material they give you.