How do I reimburse myself for business expenses I paid personally?

Prepare an expense claim or clear record showing the date, supplier, amount and business reason, with the receipt or invoice attached. Separate any private element and check whether the cost is an expense, an asset or something that does not qualify for tax relief. For a limited company, an eligible cost paid on its behalf can be recorded against the amount owed to you, often through a director’s loan account or expense payable balance. That keeps the purchase separate from the later repayment. VAT recovery requires its own checks, including appropriate invoice evidence. Paying personally does not turn a private purchase into a company expense or make every cost tax deductible.

When the company repays you, match the transfer against the amount recorded as owed rather than posting another expense. Keep a clear reference and check that the balance is not duplicated in an expense claim and the director’s loan ledger. Reimbursements to directors or employees can be exempt where the relevant conditions are met; private costs or unsupported allowances may need payroll or benefit treatment. A sole trader is not an employee of their own business, and withdrawing money to cover a personally funded cost is generally drawings once the cost is recorded. CASS can help set up a simple claims process, review the evidence and keep repayments separate from salary, dividends and personal withdrawals.