Paying self-assessment tax with business card

Posted 8th Jan

I run a limited company (just me) and have a self-assessment tax bill due at the end of January. Can my business pay HMRC or do I need to pay the bill from my personal bank account?

Thanks for any help.
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You can pay it from your company bank account, not a problem, but it’ll be classified as a personal payment within the director’s loan account of your company books.
Strict answer is No if your intention is to have your personal tax paid by the company. But that doesn't mean you can't do it.

It will classify as a Benefit in Kind to go on the P11D if you are paying yourself as a PAYE employee unless there is a very sound reason for the company paying the tax. I'm not sure any reasons still exist. had

If you are a Director and paying yourself by dividends, it can go in the Directors Loan account. In the good old days, much depended on your accountant's attitude to how the loan and repayment are dealt with. For a while now, HMRC has a system (Connect) that will flag the payment of a personal debt by a business account. You may get away with it once. Eventually, it will get tagged and as it's evasion, they have 'forever' to recover tax, interest and penalties and they will refuse if you apply for liquidation. .
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