Business Account for personal expenses

[Rembrandtlin]

Hello,

I have recently started my company as reseller. I purchased items with my personal credit card. I receive my resell funds in business account. I use business account to pay back my credit card balance.

I have recently made a mistake to pay my rent with my personal credit card. My personal credit card is supposed to be for business use. After, I received my credit card statement and it was paid from my business account by mistake. It was done automatically.

Question 1: Is it ok to purchase personal expenses from Business Account? It is a private limited company and I am the sole owner of my business.

Question 2: If question 1 is negative. How should I fix it?

Thank you in advance.

 

[Mr D]

Sole trader?

Limited company?

 

[Rembrandtlin]

Sole trader?

Limited company?

Private limited company

 

[Newchodge]

Effectively the company has lent you the money. You just repay the loan from the company.

 

[Paul Kelly ICHYB]

BUT, you are using a personal card, not company one. Every transaction is personal and repayed by the company!

If you pay your own bills on your own card, but the business pays the whole card bill, you need to repay the company.

Make it simpler - get a business card.

 

[japancool]

If he's using his personal card to pay for company purchases, he's just lending the company money.

 

[Rembrandtlin]

BUT, you are using a personal card, not company one. Every transaction is personal and repayed by the company!

If you pay your own bills on your own card, but the business pays the whole card bill, you need to repay the company.

Make it simpler - get a business card.

I tried to get a business credit card but since there isn’t many options of business credit card. That’s why I am using a personal credit card for business use. And my accountant thinks there is no problem with that.
Thanks for your reply.

 

[Rembrandtlin]

If he's using his personal card to pay for company purchases, he's just lending the company money.

Yes. This is the same as what my accountant said. But I’m just not sure if it is the other way round. That’s why I decided to ask here. And it looks like that I just need to repay back the company.
Thanks for your reply.