Using my own credit card

videoproductions · Feb 8, 2006

i want to pay for quite a large amount of hardware online. Unfortuantely my business card has too low a limit. My personal credit card doesnt.

Can I pay with my personal credit card, take the amount out of the business account and put that on the card and then claim back the VAT when we become VAT registered in about six months ?

Or should I try to wangle a direct bank transfer of the payment ( about £8000)

Feb 8, 2006

I often did this with my accounts, especially with my old bank account because I didn't have a visa card initially.

having said that, I'm a sole trader and not VAT registered, so it could be a different scenario. I would have thought though that so long as you keep accurate records, it should be fine.

Alpha · Feb 8, 2006

Should be possible providing the invoice itself is made out to the company not the individual.

Joyous · Feb 8, 2006

videoproductions said:
Can I pay with my personal credit card, take the amount out of the business account and put that on the card and then claim back the VAT when we become VAT registered in about six months ?

Not sure what you're planning to do with the goods but if they're not in your pessession when you register, you can't reclaim the VAT.

Regards

Joy

creacom · Feb 8, 2006

I know that you can claim for back dated VAT but I dont remember for how long. One side of my brain is saying 1 year before registration and the other is saying 3 months.....

Take a look on the HM Customs and Excise website and they will tell you.

Jacqui

Pebble Communications · Feb 8, 2006

I didn't know you could do that, interesting.

Once had my car windscreen repaired by a very cheeky company. They quoted me the 'total price' on the phone but then added VAT to it after doing the job. He wouldn't budge so I asked for a VAT receipt with the VAT reg. number. He then had to ring his office for the details as no VAT number was on the receipts he had and finally said they were not registered 'yet' but were going to register soon. So then I of course I absolutely refused to pay the 'VAT' and ended up paying the original price. I bet this is a con they run on everyone, adding VAT without being VAT registered and keeping the money.

What really made me laugh though was at the end he said that when their VAT registration came through he would come back for his VAT money!

Alpha · Feb 8, 2006

I've already provided the answer to Jacqui's memory problem in a previous question

see

http://www.ukbusinessforums.co.uk/ftopic2401.php

creacom · Feb 8, 2006

If I remember correctly ( Alpha can you help me out again ? ':wink:' )

You cannot issue a VAT invoice without your reg number. If you are waiting to be registered you need to issue one without and then once you have it issue one with. And it all has to be done within a certain timescale.

Jacqui

Alpha · Feb 8, 2006

You cannot issue a VAT invoice without your reg number. If you are waiting to be registered you need to issue one without and then once you have it issue one with.

Thats correct Jacqui

The determining factor is the date on the vat registration certificate.

For any invoices issued on or after this date the business must pay over the required amount of vat.

You cannot charge vat on an invoice without a vat registration number however the wording to be used is 'vat registration pending' to inform the customer that they will be required to pay vat on the supply once the registration has been approved.

The catch here is always when you are a business that serves private individuals particularly cash based business as you will not be usually able to chase customers for the vat element.

creacom · Feb 8, 2006

Occchhhh ( as we say in Scotland ! ) I knew it !

Im going to go and work for the HM Customs and Excise. I must have a future in it ! :lol:

Jacqui

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