What Should I Do If I Made a Personal Expense Using My Corporate Card?
If you find yourself in a situation where you have used your corporate card for a personal expense, there are two actions you can take:
Make a Refund to the Corporate Account (Recommended)
The best approach is to refund the exact amount of the expense to the corporate bank account from your personal bank account.
When making this transfer, it's crucial to label it clearly with the note "Refund for personal expense on DD.MM.YYYY."
Afterward, kindly allow 24-48 hours for Companio to display the transaction in your list of bank movements, and mark that transaction as Other Options > Personal Expense Reimbursement.
This method is highly recommended as it does not incur additional taxes and directly rectifies the mistake.
Declare the Expense as Non-Business Related
If refunding is not feasible, you should contact us to report the transaction as a personal expense.
In this case, we will record the expense as "expense not related to the business."
However, be aware that this option comes with a financial downside:** a 20% income tax will be charged on the gross amount of the expense**, reflecting the tax implications of a personal purchase initially charged to the business.
Regardless of your chosen option, it is essential to handle the situation promptly to avoid any misunderstandings or complications.
To prevent similar situations in the future, try to maintain a clear separation between personal and corporate expenses and regularly review your card statements. Please contact us if you need further assistance or have more questions.
Make a Refund to the Corporate Account (Recommended)
The best approach is to refund the exact amount of the expense to the corporate bank account from your personal bank account.
When making this transfer, it's crucial to label it clearly with the note "Refund for personal expense on DD.MM.YYYY."
Afterward, kindly allow 24-48 hours for Companio to display the transaction in your list of bank movements, and mark that transaction as Other Options > Personal Expense Reimbursement.
This method is highly recommended as it does not incur additional taxes and directly rectifies the mistake.
Declare the Expense as Non-Business Related
If refunding is not feasible, you should contact us to report the transaction as a personal expense.
In this case, we will record the expense as "expense not related to the business."
However, be aware that this option comes with a financial downside:** a 20% income tax will be charged on the gross amount of the expense**, reflecting the tax implications of a personal purchase initially charged to the business.
Regardless of your chosen option, it is essential to handle the situation promptly to avoid any misunderstandings or complications.
To prevent similar situations in the future, try to maintain a clear separation between personal and corporate expenses and regularly review your card statements. Please contact us if you need further assistance or have more questions.
Updated on: 30/04/2024
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