Business credit card paid personally

Choma

I am being offered a company credit card from my employer. This is to be used for purchases within my department. I am expected to pay the resultant invoice from the credit card provided, from my personal bank account and then claim expenses back from my employer. Is this legal?
Would the credit amount given on the company card affect my own ability to get credit?

jonesMUFCforever

Yes but what does your union say on the matter?
I would have thought the statement on that account would go to your employer to pay.

agrinnall

I'd decline their offer unless they change the payment method so that the statement comes to them and they pay it with no intervention from you (except perhaps to verify that the entries are the purchasees they made). How are these items purchased at the moment? What is the reason for changing that process?

pochisoldi

Choma wrote: »

I am being offered a company credit card from my employer. This is to be used for purchases within my department. I am expected to pay the resultant invoice from the credit card provided, from my personal bank account and then claim expenses back from my employer. Is this legal?

In my experience (going back 15 yrs), this is normal - charge the card, claim expenses, get the money, pay the card.
However the real question should be "Is this personal or joint liability?"

Personal liability - if the card doesn't get paid, then the issuer comes after me.
With joint liability, if the card isn't paid, they can chase me or the company (and they will choose the easiest target - the company)

IMHO a personal liability card is unacceptable, unless I would otherwise struggle to get a credit card, to the extent that when one employer offered me a personal liability company card I said "thanks but no thanks, I'll stick with my own card (and it's rewards)"

A joint liability card is preferred - if the company don't pay me my expenses, I don't pay the card, and the company gets chased, and when the company chases me I can say "Go ahead sue me, I owe you nothing once I've exercised the right of set off".

PochiSoldi

Choma

The agreement is that I would be liable for all charges if the invoice is paid late. This could be taken directly from my salary. I would be responsible for all purchases, payments and charges. All the conditions are from the company. Can I impose conditions for using my account?

Chino

pochisoldi wrote: »

In my experience (going back 15 yrs), this is normal - charge the card, claim expenses, get the money, pay the card.

You're presumably thinking of personal travel and entertainment expenses - this isn't what the OP is referring to. The OP is being asked to be responsible for paying for items used by the OP's company.

OP - you should walk away from this. What your company is asking you to commit to is unreasonable.

Wellard_Mann

Chino wrote: »

OP - you should walk away from this. What your company is asking you to commit to is unreasonable.

I agree.

I’ve had company charge cards in my career with two different companies – one was central billing to the company and the other personal billing to me (both Amex). The reason for one company issuing the personal billing cards was that they employed a lot of young graduates who, at that early stage in their careers would have difficulty in obtaining cards on their own account, but who were expected to travel in the course of their jobs. Crucially, the expense reimbursement system operated such that employees had the funds in their bank well before the card payment fell due.

However, this was for travel and entertainment expenses, not purchases. I too would walk away from this one.

MallyGirl

I would also walk away.
Way back I worked for a company that went bust. My office was resurrected phoenix like but the Edinburgh office was not wanted by the new company. The guys up there didn't received their final pay packet and were not reimbursed for any expenses still on the company cards with their names on. I would never leave myself exposed to that sort of a risk.

Marchitiello

The only time I had a similar card it was actually billed to the company and I only had to tick any personal expenditure that I also had on the card, and had to pay this myself to the employer but the balance was paid by the compa them

redpete

Why would you want to lend the company money to fund their day to day corporate expenses?