--- title: How Are Business Expenses Made With My Personal Credit Card Recorded? description: "**Last updated:** 19 October 2026 ## Can you use a personal credit card for business expenses? Yes. You can pay business costs on a personal credit card and still claim them as business expenses, if they are genuinely for the…" url: "https://accotax.co.uk/knowledgebank/using-personal-credit-card-for-business-expenses/" updated: "2026-10-19" category: "Monthly Tax Q&A" tags: - business expenses --- # How Are Business Expenses Made With My Personal Credit Card Recorded? **Last updated:** 19 October 2026 ## Can you use a personal credit card for business expenses? Yes. You can pay business costs on a personal credit card and still claim them as business expenses, if they are genuinely for the business and you keep receipts. For a sole trader, record the expense in your books. For a limited company, the company can repay you, and the cost goes through your director's loan account or an expense claim. Interest and card fees on purely business spending can also be claimed, but personal spending on the same card can't. ## Sole traders - Record each business purchase with the receipt - Claim the expense in the period it was incurred (or paid, under the cash basis) - Claim the business share of interest and charges, if the card is used only or mainly for business - Personal and business spending on one card is allowed, but keep the records clear ## Limited company directors 1. Pay the expense on your personal card 2. Submit an expense claim with the receipt 3. The company repays you, tax-free, because it's a reimbursement, not income 4. If you don't claim it, the company owes you the amount through the director's loan account ## VAT If your business is VAT-registered, you can reclaim VAT on business purchases paid by personal card, if the VAT invoice is in the business's name, or in yours as a sole trader. For a company, ask suppliers to address invoices to the company. ## Example A director buys a £600 laptop for the company (including £100 VAT) on her personal card. The company repays her £600, claims £100 of VAT and adds a £500 asset to its accounts. She pays no tax on the repayment. ## Risks to avoid - Mixing personal and business spending without records - Card interest on personal spending isn't allowable - Unclaimed expenses may mean you pay more tax - An overdrawn director's loan account, if the company card is used for personal spending ## Best practice - Use a separate business card where possible - Upload receipts to apps such as Dext straight away - Claim expenses monthly - Reconcile card statements against your bookkeeping ## Director's loan account pitfalls If a director takes more from the company than they've put in, and the loan is still unpaid 9 months after the year-end, the company pays a temporary s455 charge of 35.75% of the balance (33.75% for loans made before 6 April 2026). A loan over £10,000 that is interest-free may also be a benefit in kind. Personal spending put through the company card should be posted to the loan account, not to business expenses. Review the account monthly and clear it with a salary, dividend or repayment before the deadline. ## Frequently asked questions ### Can my company repay my credit card interest? Yes, for interest on business spending, as part of an expense claim. ### Can I earn rewards points on business spending? Yes. Points for personal cards are usually not taxable for you. ### What if I lose the receipt? Keep your card statement and a note of the purchase. HMRC may accept other evidence, but VAT needs a VAT invoice. ### Is a business credit card better? Usually, for clearer records and separation. Related: [what expenses can I claim for business](https://accotax.co.uk/knowledgebank/what-expenses-can-i-claim-for-business/) and [recording VAT on expenses](https://accotax.co.uk/knowledgebank/how-to-issue-vat-invoice-when-claiming-expenses/). ## Talk to Accotax Want this handled for you? Our team at [Accotax](https://accotax.co.uk/) can help with business expenses and director's loans. See our [limited company accountants](https://accotax.co.uk/limited-company-accountants/) service, or [contact us](https://accotax.co.uk/contact/) for a free, no-obligation quote. This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.