Using my personal FX trading account

[Jetsetter4805]

Hi All,

My UK limited company has a European based vendor and I need to pay them EUR each month. I (as an individual) already have an FX account that allows me to buy foreign currency in exchange for GBP. Rather than setting up another account in the name of my company, could I simply buy EUR using my personal account, pay the vendor from that and then re-imburse myself using the company's GBP?

Upon receipt of the vendor's invoice (sent to my company) would the entries be:

Debit: Expense in P&L
Credit: Director's Loan Account

I pay the invoice using my personal FX account and then re-imburse myself in GBP from the company's bank account:

Debit: Director's Loan Account:
Credit: Bank

Is this approach ok?

Many thanks

[bd6759]

Not ideal, but as long as you have the paperwork to show that you are simple a conduit then you should not encounter any problems.