Using personal credit card to purchase items for my business?

[Rosco1112]

Hi everyone,

I'm in my second year of trading so still learning a lot of things as I go along but need something cleared up if anyone could help?

Last year I purchased all my stock/petrol etc on my personal credit card rather than through my business bank account. I received hundreds of pounds back in cashback as my personal credit cards offer a 1% cashback on l purchases.

However I am now putting everything through my business debit card, reason being is I figured it would be a lot easier to have everything running through one account.

My question is am I legally allowed to buy things for my company through my personal account? If so it seems silly not to as it will earn me hundreds of pounds per year.

Kind regards

Ross

 

[Scalloway]

Are you a sole trader or do you operate through a limited company?

 

[Rosco1112]

Hi thanks for your reply

I am a limited company

Kind regards

Ross

 

[StevensOnln1]

Anything you buy for the company using personal funds creates a directors loan. The company can reimburse you for this without any tax being due.