I've formed a new limited company of which I am the director and sole shareholder. My understanding is that when I make business expenses, I should now ask the supplier to make out the invoice to the limited company rather than to me personally.
Let's say that I make a business expense on behalf of the company, and when I receive the invoice from the supplier, the invoice appears to be made out to me (i.e., it has my name at the top, though it does also contain the name and address of my company underneath), and for whatever reason the supplier is unable or unwilling to issue a new invoice with my name removed.
- Can this invoice be paid out of the company's business account? Or is the right approach to pay this invoice out of a personal account, and then reimburse myself out of the company's business account?
- If I need to pay it out of a personal account and reimburse myself, is there some documentation that it would be useful for me to create and keep with the company records for tax/compliance purposes? Is it sufficient to just create an expense reimbursement form with the date, amount, and nature of the expense?
- Also, would I then be taxed on this reimbursement as if it were self-employment income, even though it was a business expense?