Help,
My accountant tells me that under no circumstances can I pay for training directly from my company because it is set up as a personal services company. Therefore I have to pay myself a dividend and pay the tax before I can use this money for a training course.
Actually it is slightly more complicated as my partner wants to set up his own company, funded by investment from my current company, and use part of that investment to pay for a training course. His new company will not be a personal services company but I am told that the same principle applies.
I can't belive that this is the case. For example, I cant believe that KPMG's directors withdraw dividends and pay income tax in order to finance training courses for their employees.
Has anyone else come across this?
My accountant tells me that under no circumstances can I pay for training directly from my company because it is set up as a personal services company. Therefore I have to pay myself a dividend and pay the tax before I can use this money for a training course.
Actually it is slightly more complicated as my partner wants to set up his own company, funded by investment from my current company, and use part of that investment to pay for a training course. His new company will not be a personal services company but I am told that the same principle applies.
I can't belive that this is the case. For example, I cant believe that KPMG's directors withdraw dividends and pay income tax in order to finance training courses for their employees.
Has anyone else come across this?
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