Buying wholesale items under Company but paying for with personal funds

[porkbelly32]

Hi All,

I've tried searching through the forums to see if this was asked previously, but did not come across any that matched my scenario. So here goes...

I have a VAT registered Limited Company.
I'm really into a hobby, lets say Paintball as it's a good example. I spend a lot of my personal money on consumables to partake in paintball. I want to buy in bulk to save money, but wholesalers do not sell directly to the general public/individuals.

My question is: Can I register my Company with the various wholesalers so that I can purchase in bulk everything I need/want under my Company for personal use?

Key Points:

1. No money will be taken out/in from the Company Business Account. Though, I suspect the wholesaler will be addressing my company in terms of invoices.
2. Any/everything I buy will be funded personally via personal debit/credit cards, etc.
3. I will be charged VAT by the wholesaler, but I will not reclaim VAT as these items will not be related to my own company in any way - the SIC code for my company does not relate to the nature of the hobby at all.

Would this cause any problems with HMRC at all?

 

[StevensOnln1]

If you don't put any of it through your business accounts how would HMRC even know about it?

 

[porkbelly32]

If you don't put any of it through your business accounts how would HMRC even know about it?

Absolutely, that was my initial thought. But I am erring on the side of caution to see if I would fall foul of anything

 

[StevensOnln1]

There is the potential pitfall that the wholesalers might not be willing to open an account if your business doesn't trade in the products they sell.

 

[porkbelly32]

There is the potential pitfall that the wholesalers might not be willing to open an account if your business doesn't trade in the products they sell.

True, but it's something I've considered by adding additional SIC code to my company. Which apparently has no real impact at all from a HMRC perspective (in that I won't be trading in that area).

 

[Scalloway]

I guess it depends on the wholesaler but I am sure they don't care how you pay for the goods or what you do with them.

 

[WaveJumper]

I am with the above if your not putting the invoices through your company who’s going to care. I am sure the wholesaler won’t mind what your buying especially if it’s another nice big sale.

 

[porkbelly32]

I was thinking the same, the only link would be the sellers invoices. Common sense would say "no one cares" as I'm not witholding any form of tax/duties, but I didn't want to make an assumption and get stung by some obscure rule.

This looks more promising!