Tax deductible expenses and accounting

[EWP]

I’m currently charging mileage costs, i.e. 45p per mile to the Directors Loan Account as a tax deductible expense. Should I be doing the same for costs such as my Limited Company Insurance costs and other tax deductible expenses, e.g. Office Equipment, Accountancy costs, etc?

Thanks, Eddie

[Paul_Courtier]

If you’ve paid for them personally and they are true business expenses then yes.

But office equipment is a capital expense not a tax deductable one.

[EWP]

Hi Paul
I was referring to stationary. What about other tax deductible items such as Company Insurance and Accounting fees etc, should I pay from Director’s Loan Account?
Thanks, Eddie

[Paul_Courtier]

It’s not really a question of should you. It’s a question of do you have to.

If your company has available funds to pay the expenses then the company pays for it. If you happen to have paid for these expenses out of your own personal money, then it is paid from the directors loan account.

Its not a either or, its a decision based on what has already happend.

[Lurch]

I think there’s some confusion here. The payment itself can come from anywhere, it is how the thing you are paying for is attributed that will make it tax deductible etc. If you e.g. buy some stationery then the purchase invoice will attribute that to the relevant nominal, the payment is a separate matter and does not influence the actual purchase.

[EWP]

Thanks to all those who replied, penny finally dropped!