Skip to main content

This is a new service – your feedback will help us to improve it.

  • Used personal bank account to pay on behalf of company transaction. How do I file this?

    In February 2022 I hired an art director for several hours to help me scope a project and give advice on hiring artists. Apparently given that he was within the EU (based in Austria), and that my limited company was based in the UK, and that it was a B2B transaction meant that he didn't need to charge me VAT. I gave him my company number for the invoice, but I used my personal bank account to pay for it as I hadn't set one up for my limited company yet - and it wouldn't have had any money in it anyway as it hasn't sold anything yet. The limited company company I had set up still has had no income yet, and therefore can't pay back to my personal bank account. I'm unsure whether I've made a mistake here using my personal bank account to pay, and what I can do to remedy it. I'm also unsure how I'm meant to log this in my company records, or in my company accounts submitted to Companies House, or on my corporate tax return. 1. Does this count as a trade? 2. As I used my personal account, does this count as a company expenditure/loss or not? 3. If not, do I somehow need to pay this VAT after all? 4. Does it count as a debt instead of an expenditure, and what is the correct way to record or submit this on these 3 documents? In November 2022 I paid for a product from a person based in the USA, and I did pay for the VAT, also using my personal account, but using my limited company's name. 5. Should I have paid this VAT? 6. How would I reclaim it if not? 7. Similar to the above questions... How does the fact I used my personal account affect my record-keeping, company accounts that I submit, and corporate tax return? Is this recorded as a debt to me personally, or a loss/expenditure? Please help. Thanks Phil