Can credit card payments be classed as an expense?

[realfun]

Hi Everyone

I have been registered as a sole trader for 3 years and to be honest, things didnt goto plan due to ..not planning basically.

All is going ok now and on the up but I racked up quite a few thousand in credit card debts on my path down learning what and not what to do in business

My question is, even though the credit cards are in my name and not a ltd company name, can I put them on my tax return as expenses?

Its a shame I didnt register as a ltd years ago as this debt now is effecting our personal lives until i get it sorted out now the business is growing.

Many Thanks

Rob

[RAL]

Rob

Not the payment to the credit card company for the personal debt. It is your debt. It is not an expenses for the business purpose. Hence I am afraid answer is no.

[KM-Tiger]

My question is, even though the credit cards are in my name and not a ltd company name, can I put them on my tax return as expenses?

Not on your personal tax return.

If you have made purchases using your personal credit card on behalf of your Ltd Co, then there is no reason why the Ltd should not reimburse that expense, provided it is legitimate and preferably backed by an invoice made out to the Ltd Co, though that's not always possible.

If the Ltd doesn't have the cash, post the claim to your director's loan account. The effect will be to reduce the Ltd Co's profit and thereby gain tax relief, or increase the loss which can be offset against future profits.

[realfun]

Okay, Thanks Guys

Yeah not a ltd yet although still debating if to..

Cheers

Rob