Further to @Glenn’s reply to @Hettie, here, what account category / nominal code do we post generic expenses under? One called “Approved Expenses” or one for each supplier - Generic Food, Generic Travel etc.
I would have thought it has to be a nominal code that doesn’t affect corporation tax (like 7403) as they are in effect, refunded and doesn’t cost my company anything.
Thanks.
For now, I’m using 5100, following the suggestions in this post, however, I don’t know if 5100 reflects in corporation tax calculations?
In that thread you’ve linked to it’s talking about cases where a supplier invoices the company, the payment is made by a director from their own personal funds and the company pays the director back later. In that case it’s no different from a purchase paid out of the company bank account - the expense is being incurred by the company and you’d record it under the appropriate nominal code for the type of expense.
The fact that the company is effectively borrowing money from a director to pay for it and then paying that director back at a later date is a matter for the balance sheet only.
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