Client paying expenses when 2 year rule in force

[TheCyclingProgrammer]

Would I then need to declare the the total amount as a BIK on my self assessment and pay income tax on that at my marginal rate ?


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In what scenario?

If YourCo is simply invoicing the client for the additional costs incurred it has nothing to do with your personal tax situation - it’s just extra company income at that point.

The only scenario in which you’d incur a BIK that would need declaring as above would be if you continue to personally reclaim those expenses from YourCo.

If you paid corporation tax on the extra profits generated from the additional billed income then any remaining profits can be distributed as a dividend like any other profits subject to personal tax.