Can you claim PCG sub as IR35 expense?

[dx4100]

Quick question...

Can I claim my PCG subscription as business expense outside of the 5% allowance..aka as a subscription to a professional body ?

Im struggling to find the answer..

Thanks

[Gonzo]

Quick question...

Can I claim my PCG subscription as business expense outside of the 5% allowance..aka as a subscription to a professional body ?

Im struggling to find the answer..

Thanks

It you are paying up under IR35 surely the PCG subscription is rather superfluous?

hth

[Gonzo]

OK, the more helpful answer, I doubt it.

hth

[dx4100]

cheers for the reply

[Gonzo]

There was some debate on the PCG site itself a while back about the tax treatment of the subs.

There is some reason why they are not an allowable expense. I believe that it is something to do with the PCG not wishing to give the membership list to HMRC (or something like that). Obviously, most PCG members do not pay up under IR35.

[ittony]

There is some reason why they are not an allowable expense. I believe that it is something to do with the PCG not wishing to give the membership list to HMRC (or something like that).

This being the case, and having already paid for my subscription with a company cheque, what do I need to do account for this? Just not subtract the subscription fee from profits when calculating corporation tax? Or would I and/or the company have to pay National Insurance on it too?

[jimjamuk]

i think you call it a directors loan for now - then pay the money back at some point

[Sockpuppet]

This being the case, and having already paid for my subscription with a company cheque, what do I need to do account for this? Just not subtract the subscription fee from profits when calculating corporation tax? Or would I and/or the company have to pay National Insurance on it too?

As said just pay the money back to the company.

[malvolio]

We're trying to get clarity, there is some obscure bit of arcane tax law that says if the members are claiming it as expenses, then PCG can't offset that income for CT. Or something equally stupid. And the way round that is for PCG to supply HMRC with all their members' company details. Yeah right...

General guidance is that it is a legitimate company expense, the argument being that you wouldn't need the membership if it weren't for the company, hence there is no personal benefit, hence no BIK can accrue. So the company can pay for it.

However, oafc000, why not ask this question on the PCG fora? You're far more likley to get the right answer than you are on here, probably straight from one of the directors...

[Platypus]

Quick question...

Can I claim my PCG subscription as business expense outside of the 5% allowance..aka as a subscription to a professional body ?

Im struggling to find the answer..

Thanks

No - it's not a subscription to a professional body.
So I always categorise it as "Legal Fees" and my accountant is happy. I'm sure categorising as "Insurance" would work too.