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Managing Expenses with a personal bank account or out-of-pocket form? Which works best?
Should I add my personal bank account to manage expenses incurred through it or just use the out-of-pocket feature to add the expenses manually? My personal account would have so much stuff to explain in it, most of it completely irrelevant to my business so I'm guessing I shouldn't and add the expenses manually.
Also, with expenses I'd prefer to group a whole bunch of expenses like travel together into a month and add the total in as one sum. Are people doing this and what are they using as a reference to this bunch of receipts?
Also, with expenses I'd prefer to group a whole bunch of expenses like travel together into a month and add the total in as one sum. Are people doing this and what are they using as a reference to this bunch of receipts?
I’m confused
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Inappropriate?Lee, are you trading as a limited company or as a sole trader?
I’m happier when the sun is out.
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Inappropriate?I'm a limited company ... at the moment I'm tracking expenses in a Google Spreadsheet and a shoe-box full of receipts ... {sigh}
I’m anxious
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Inappropriate?Hi Lee
Do you have a business bank account, or are you a sole trader using only your personal account?
Regarding the group of expenses, there's nothing stopping you totalling up expenses for a particular category into one out-of-pocket expense. The receipt reference in FreeAgent is for you own use, so you only need to fill it in if you want to.
Olly
I’m happy
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Inappropriate?I'm a limited company and already have my business account in the system which is great. I just wondered if I should also add my personal account and use this to log expenses that have come from it or whether this is not worth the hassle of having to account for entries in my personal account when there are only a few relevant transactions. It would be easier for me to use the out-of-pocket expenses form to log these expenses I guess. Just wondered what other people were doing. As for grouping, I do intend to batch travel, taxi, lunch receipts into monthly chunks and use a filing system at home as reference (an envelope with the date on it). Again, I wondered what other people were doing for this. If you're like me your probably sifting through receipts every month and inputting these individually would be a nightmare.
I’m getting happier
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Inappropriate?If you add your personal bank account to FAC you will complicate completion of your P11D. Better to "submit" expenses claims. These will still have to be included on your P11D but will be far easier to summarise.
The easiest option is to apply for a dispensation which includes the expenses you are claiming back. This will stop them having to go on the P11D.
I was going to give you a link to HMRC website but it isn't working even though it's the end of the tax year!!
I’m excited about the end of the tax year!
EMPLOYEE
