<p>There may be times when you have no option but to use your personal funds to cover company costs such as paying by cash or if you forget to bring your company card. It's important to keep a copy of the receipt of all expenses but this is especially important when paying for costs and expenses personally. This way, a record of the cost can be kept, logged in your company accounts and then your company can reimburse you for this.</p>
Small Business Accountants
Can I claim personally paid expenses?
A UK limited company director who pays a legitimate business expense from a personal account can reclaim the cost from the company by recording it as an expense reimbursement or a credit to the Directors' Loan Account. The expense must be incurred wholly and exclusively for business purposes, be supported by a receipt, and be recorded in the bookkeeping. VAT can only be reclaimed if the original invoice was in the company's name.
