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justintime
4th June 2010, 10:21
Is it possible to claim credit card interest on a liegitimate business expense, where the payment has been made on a personal credit card.

For instance I purchase something for £2000 on my card for something used in the business and pay it back over 6 months using business income.

Obviously interest would have accrued as a result. If it is possible where would I show this in the books?

Batra Ventures UK Limited
4th June 2010, 11:07
There was a thread on this the other day. Dont think you can claim interest and likewise there is nothing to pay if you use points etc from your cc.

justintime
4th June 2010, 12:23
There was a thread on this the other day. Dont think you can claim interest and likewise there is nothing to pay if you use points etc from your cc.

Thanks

I have dug out the relevant thread. This from David Griffiths caught my eye.

If you incur interest on the charge card, or if you paid by cheque and incurred bank charges those would not be claimable from the company (not tax free, anyway) If you paid in cash but had to pay an ATM fee to get the cash, that's not claimable.

So am I to assume that the interest can be claimed but is not tax deductable. Just as easy to pay it and mark it as drawings? (sole trader)