Paying myself back..

[Jasandjules]

As we are in the modern age I didn't bother with cheques on my business account. However, it appears that not everyone has progressed to this century therefore I have a bill that requires a cheque. I will therefore use a personal cheque and put this into the director's loan account. However, is there any reason why I can't charge the business a fee for this, say 10% of the transaction for my trouble?

[Eric Mc]

Any income the company pays you - other than pure reimbursement of a cost you have personally incurred on behalf of the company - will be subject to personal income tax in your hands.

So the company received 20% tax relief on the cost - and you PAY Income Tax at perhaps 40% on the income.

[PurpleMoonlight]

Really, why bother.

You would have to declare it to HMRC and pay tax on it.

[Jasandjules]

Ah well just a direct refund it is then!