"I get *all* my expenses back..."

[Trev16v]

Tried to have the conversation again and get things straight, but I shouldn't have bothered.

He continues to insist that "you are not the company, the company is employing you as the director; and you get all of your expenses back. Are you telling me that if you spend £10, then your company only gives you £2.10 back?"

I respond along the lines of: "Well no, I'm saying that you can draw the entire expense back from the company so you're not out of pocket, but you will still be down as far as the company profits are concerned, as these are ultimately your earnings..." and I'm interrupted with "But never mind the company profits... the company is employing you... It pays your expenses back..." And on it went.

So I kind of gave up.

He confirms he's not paying any CT this year. "Expenses.. you have to milk it" he advises.

"The company Christmas party for the five of us is already booked and paid for via expenses". The five people being himself, obviously, the wife and the in-laws who down as company secretary, etc.

All family mobile phones paid for via expenses.

And they are renting their own personal laptop computers back to themselves.

Seriously...

[pmeswani]

Tried to have the conversation again and get things straight, but I shouldn't have bothered.

He continues to insist that "you are not the company, the company is employing you as the director; and you get all of your expenses back. Are you telling me that if you spend £10, then your company only gives you £2.10 back?"

I respond along the lines of: "Well no, I'm saying that you can draw the entire expense back from the company so you're not out of pocket, but you will still be down as far as the company profits are concerned, as these are ultimately your earnings..." and I'm interrupted with "But never mind the company profits... the company is employing you... It pays your expenses back..." And on it went.

So I kind of gave up.

He confirms he's not paying any CT this year. "Expenses.. you have to milk it" he advises.

"The company Christmas party for the five of us is already booked and paid for via expenses". The five people being himself, obviously, the wife and the in-laws who down as company secretary, etc.

All family mobile phones paid for via expenses.

And they are renting their own personal laptop computers back to themselves.

Seriously...

It does go down to what his dispensation has agreed with HMRC. If he is going beyound what has been declared on his P11D, then he will be liable to be investigated by HMRC. You could ask him if he claims 40p a mile beyond 10,000 miles (or whatever the upper limit is) when he drives his car.

However, I could be wrong in my understanding of dispensation.

[expat]

...."The company Christmas party for the five of us is already booked and paid for via expenses". The five people being himself, obviously, the wife and the in-laws who down as company secretary, etc.

All family mobile phones paid for via expenses.

And they are renting their own personal laptop computers back to themselves.

Seriously...

Christmas (or other) party: up to 150.00 per employee. Each employee may bring a partner etc, so Director + Co Sec can get max 4 people. The party must be open to all employees and must be an annual event. If the cost goes above 150.00 then it is ALL taxable.

One mobile phone for each employee. Not shareholder, never mind spouse etc.


No wonder Hector thinks we're worth a second look. These people are thieves, and they are stealing from you and me. Well, me anyway.