Members Club Fees as allowable expenses?

[northernladuk]

It does? Oh that's OK then.

IMO if you can look HMIT in the eye and argue that it's 99.9% for business then claim it. If deep in your heart you know you are taking the piss and just looking for us to back you up then don't.

Not much more to it than that I'd say.

Can you get membership in the company name and company pay it. Some clubs allow this.. Well the good ones do.

[wapperer]

It does? Oh that's OK then.

IMO if you can look HMIT in the eye and argue that it's 99.9% for business then claim it. If deep in your heart you know you are taking the piss and just looking for us to back you up then don't.

Not much more to it than that I'd say.

Can you get membership in the company name and company pay it. Some clubs allow this.. Well the good ones do.

I registered with my business name and email address, registered postal address. Id rather not look HMIT in the eye ta! I get that people take the pee but when its a real business use case why can't a portion of the cost be used? am I being petty?

[Craig@Clarity]

You can have your company pay for the club fees and treat it as an expense in the company. However, you should then treat the cost as a benefit in kind and declare it on your P11D, have the company pay the class 1A NIC and you take the hit on your personal tax. If it is the case that you would not use it for personal use, the fact that it is available for personal use would mean it's subject to a BIK. I'm viewing this similarly to gym memberships and corporate boxes.

[wapperer]

You can have your company pay for the club fees and treat it as an expense in the company. However, you should then treat the cost as a benefit in kind and declare it on your P11D, have the company pay the class 1A NIC and you take the hit on your personal tax. If it is the case that you would not use it for personal use, the fact that it is available for personal use would mean it's subject to a BIK. I'm viewing this similarly to gym memberships and corporate boxes.

I probably should have said im a sole trader - I see your point about BIK - -but unlike a gym membership or a private box etc it has a business use 99% of the time as a place of business which I started using instead of the £400 a month coworking space (weWork - what a load of poop that was). I think ill just forget about it then - I thought that It would perhaps workout because I was actually saving money in terms of the businesses expenses but I now see its not that simple.

thanks people

[northernladuk]

thanks people

You're welcome. Just sack your bloody accountant. He's bobbins.

[wapperer]

You're welcome. Just sack your bloody accountant. He's bobbins.

Consider him marched off the premises!!

[Craig@Clarity]

I probably should have said im a sole trader - I see your point about BIK - -but unlike a gym membership or a private box etc it has a business use 99% of the time as a place of business which I started using instead of the £400 a month coworking space (weWork - what a load of poop that was). I think ill just forget about it then - I thought that It would perhaps workout because I was actually saving money in terms of the businesses expenses but I now see its not that simple.

thanks people

In that case, I'd say claim for the business portion of it. Keep diary notes of meetings and appointments to support the business element of it. At the end of the day, it's up to HMRC to argue that the portion of cost claimed isn't the correct business element and up to you to justify it. In all likelihood, I don't think HMRC will pick up on it but as is always the case, have supporting evidence and back up your claim in advance, just in case.

[wapperer]

In that case, I'd say claim for the business portion of it. Keep diary notes of meetings and appointments to support the business element of it. At the end of the day, it's up to HMRC to argue that the portion of cost claimed isn't the correct business element and up to you to justify it. In all likelihood, I don't think HMRC will pick up on it but as is always the case, have supporting evidence and back up your claim in advance, just in case.

Thanks, and just out of interest what would be the consequence if they disallow it despite evidence?

[Craig@Clarity]

Thanks, and just out of interest what would be the consequence if they disallow it despite evidence?

You'd owe the tax that you got relief on from claiming the deduction and potential interest on top e.g. say you claimed £1k of expenses which they disallowed. If that £1k originally saved you £200, you'd be liable to pay that £200 back to HMRC plus late interest.

[wapperer]

You'd owe the tax that you got relief on from claiming the deduction and potential interest on top e.g. say you claimed £1k of expenses which they disallowed. If that £1k originally saved you £200, you'd be liable to pay that £200 back to HMRC plus late interest.

Thanks for the insight. Much appreciated.