Can I pay off my personal credit card... using my wife's business card...?

tallmandat

Wondering how the best way to do this is.... over time, my wife managed to clock up my personal credit card (I know... ), to £1500.

She's recently been self employed and doing well enough, to now be in a position to help pay this off in one go... however, to make things extra complicated, she is a sole trader, has biz account with hsbc and we BOTH have debit cards signed to us from HSBC, as she allowed me to have a debit card. 
We also use Quickbooks for our incomings and outgoings. 
How is the best way please, to pay off that £1500 on the credit card?
My wife pays it off with her hsbc debit card? 
I pay it off with my HSBC debit card, which is under my name, but its basically her biz account?
How do we do this and "declare" it in quickbooks?
FYI I am employed full time so I'm on PAYE.... 

motorguy

She would take the £1500 out of the business as drawings then pay tax accordingly on it.

FluffityBunny

motorguy said:

She would take the £1500 out of the business as drawings then pay tax accordingly on it.

Correct in saying taking it out as personal drawings but there will be no tax to pay on it if a sole trader.

motorguy

FluffityBunny said:

motorguy said:

She would take the £1500 out of the business as drawings then pay tax accordingly on it.

Correct in saying taking it out as personal drawings but there will be no tax to pay on it if a sole trader.

Good point.  Wasnt sure how it worked RE: the tax but definitely take it out as personal drawings.

oldbikebloke

FluffityBunny said:

motorguy said:

She would take the £1500 out of the business as drawings then pay tax accordingly on it.

Correct in saying taking it out as personal drawings but there will be no tax to pay on it if a sole trader.

to be pedantic, there may be tax to pay on drawings, but that would occur when the tax return is done and the total taxable income for the year is calculated.
At the end of the day, drawings are drawings, she spent his money on non business purchases, repaying him from the business account is her drawings, it matters not whether that is transacted using her or his debit card. The money paid out is not a business expense and she is the sole trader, QED it is her drawings. 

bris

It makes no difference how she uses her money as a sole trader. The business pays tax on it's profits regardless of what she does with the funds in her account.

tacpot12

She needs to be careful that she does not break the terms of the credit card set by the lender. These might say she can use it for business expenditure, and the proposed use isn't business expenditure. 

bris

tacpot12 said:

She needs to be careful that she does not break the terms of the credit card set by the lender. These might say she can use it for business expenditure, and the proposed use isn't business expenditure. 

She doesn't have a CC she is paying off her husbands CC, she spent the money but it's still his card not hers.