As the director of your PSC, you are responsible for ensuring that all expenses paid for by your Limited Company are allowable for tax purposes. You are also responsible for retaining supporting documentation (generally receipts) for all business expenses for a period of 6 years. All supporting documentation can be stored online via your myPSC account.
The general rule is that expenditure can only be deducted in calculating trading profits if it is incurred wholly, exclusively and necessarily for the purposes of the trade. This means that expenses are only allowable if they are business related.
myPSC does not recommend paying for living costs, personal expenses or private bills directly from your PSC. Personal expenditure should be settled from your personal bank account.
You can access our complete Business Expense Guide, which provides specific details regarding Travel, Subsistence and other General Business Expenses, after logging in to your myPSC account.