Firstly apologies as I’m sure this has been discussed many times. I’ve done my upfront research and most of the chat seems pretty old and unclear to me due to multiple approaches taken in each post.
I am a director of a ltd company. I pay for expenses out of my own pocket and would like the company to reimburse me on a monthly basis. I currently create an excel spread sheet which contains all the info per month, but I need to be able to do this now on Quickfile.
The expenses include a mix of mileage/hotels/food mostly. I’ve seen mileage can be tracked separately? but this would mean spliting out mileage from my other expenses. I really want to keep a monthly track of ALL EXPENSES and pay them under one “invoice”. I dont want to split all line items out and track through year.
A number of approaches have been found on the forums but none make sense.
One includes making my self as a supplier then making a payment to that supplier each month. However I believe this can create issues with reconciling the account or something, unless it comes from the Directors loan?..This is where i get stuck. What makes sense is that I can make myself a supplier, but I wouldnt know what general code (nominal code?) to use, then the mechanism for paying and tracking get confusing to me…with all the discussions on loan accounts, new accounts and reconciliation…it used to be much simpler when i did it in excel?!
I am pretty new to this, I have an accountant, but they only use Xero, so are of no help in the details on this. I want a straight forward way to raise an expense against my company each month and pay it without difficulty. Any clear solutions would be greatly appreciated.
You can keep your excel sheet as it is, pdf details end of month from excel as backup and attached to QF invoice and pay from bank. You can setup yourself as supplier. Codes you can use travel and subsistence
I’ve just done that. Created a supplier, then a purchase for June2020 to myself as the supplier called “Director Expenses” with a new nominal code “Travel and subsistance Expenses”.
I’ve put in two line items in that purchase …one for “Mileage” (at 0% VAT) and another line item for the food and hotels (which includes 20% VAT). Both of these with the same new nominal code “travel and subsistance expenses”. This total equals the more detailed breakdown on my exccel sheet.
i thought this may be a clear way to ensure the VAT was calculated right, the mileage is without VAT isnt it. This feels liks the right approach, am I on right path?
I’d be very cautious of just reimbursing these expenses via the company without first splitting them up in to their own categories and checking that the food and mileage are within acceptable rates and allowances.
Not everything is always allowable for tax purposes.
My excel spreadsheet provides the background for the accounts. However I have now created a new nominal code for “Mileage Expenses”. This now allows me to track “mileage” and “hotels and subsistence” as different items in my reports. This seems OK to me now. Happy for further comments, but thanks to both of you for your feedback.
