Stoozing question
obay
Forumite 570 Posts
Once I have paid off all my current borrowings I want to see if I can stooze or learn about this.
I run a company - I can setup an invoice to be taken from the card - Deposited into my personal bank account that way I'd be able to draw 100% of funds from the cards and placed into a savings account almost instantly...
It wouldn't be routing through my business bank account (so i'd miss corp tax). Would this be an effective way of stoozing?
This is just a question I don't know what the outcome will be -- please be light and easy!!!
I run a company - I can setup an invoice to be taken from the card - Deposited into my personal bank account that way I'd be able to draw 100% of funds from the cards and placed into a savings account almost instantly...
It wouldn't be routing through my business bank account (so i'd miss corp tax). Would this be an effective way of stoozing?
This is just a question I don't know what the outcome will be -- please be light and easy!!!
[STRIKE]1/12/16 - £152,599.00 [/STRIKE]
[STRIKE]11/11/17 - £145,990.00 [/STRIKE] <> Overpaid £3916.
11/11/18 - £142,074.00
Barclays Car (5.99%)£0/£8,832.37
[STRIKE]11/11/17 - £145,990.00 [/STRIKE] <> Overpaid £3916.
11/11/18 - £142,074.00
Barclays Car (5.99%)£0/£8,832.37
0
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Not currently 0% processing at the moment for our business.
Thanks!
[STRIKE]11/11/17 - £145,990.00 [/STRIKE] <> Overpaid £3916.
11/11/18 - £142,074.00
Barclays Car (5.99%)£0/£8,832.37
There are loads of laws governing how money kept in the business. Revenues must go into the business bank account.
I am not 100% sure about this as I am not an accountant. I asked my accountant if I can get a personal credit card and use it as a business credit card because of the cashback deals and the fact that I buy a lot of my supplies through credit card.
Business credit cards do not offer cashback incentives the way consumer credit cards do.
The accountant said I cannot do this. I can do expensive claims for items I've bought through the credit card, but I cannot exclusively use it as a business credit card.
What do you mean by this? With a money transfer card, all you have to do is nominate which bank account you want the funds to go into and voila.
Also, please share with everyone where this no fee for money transfers card is from, I'm sure everyone would love to know.
Sounds like you don't really understand what it is you are trying to do.
https://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs
Buy a pack of (non-expensed!) crisps with it then!
As long as you document the expenses, and have the audit trail showing said items are in use in your business, they can't get funny with you.
Accountant probably doesn't want the extra work of checking your expense claims are legit.....
Credit Card provider certainly wouldn't like it if you used it solely for business either, but that's not your Accountant's problem!
Unless there's a compelling reason not to use a personal cashback card - and I can't think of one, other than extra documentation leg work in 'claiming' the expenses back from the company - I'd do it until the card company say no.
Afterall, that is what Curve etc are marketing themselves on - it's supposed to be purely business spend (as they keep reminding me....), but they take personal credit cards..... :undecided
Assuming you're a ltd company? Doing it that way you're obviously personally taking on the credit risk of your business being unable to repay (maybe that's what the Accountant is concerned about??). If you bought the items using the ltd company credit card, but come into money troubles, then there's no comeback on you personally - if you go the personal CC and claiming expenses, you're still liable personally even if you wind the ltd up.
OP's idea DOES sound dodgy though - if you're setting up an invoice through the company, it has to be related to goods/services provided, you can't do it to somehow get this money transfer to go through then make the invoice disappear..... (well you can, but auditors won't be happy!)
Pretty sure that's fraud...you can't create fake invoices even if it your own company.
Debt 5/1/18 - Credit Cards £3,188; overdrafts £0
It wouldn't be routing through my business bank account (so i'd miss corp tax). Would this be an effective way of stoozing?
Corporation tax has nothing to do with the means of banking receipts. As I do not fully understand what you are talking about setting up, I cannot deduce whether the "receipt" is taxable or not. However, If a receipt is taxable, then routing it through a PA to avoid CP is definitely going to be considered tax evasion, as opposed to avoidance.
To previous contributors ( I despair at folk making claims/statements without having a clue):
Business receipts do not HAVE to be paid into a business account, but they must be accounted for.
It is not illegal to use a personal card for business use, although it may be against the T&C's of the CC company. I ran a small company for over 20 years and always used a specific personal CC cards exclusively for business. We used a few cards,used for different categories of expense. It is true that I ran the risk of being personally liable for business debts, but business CC's carried annual fees (at least they did 5/6 years ago)