MBA costs through the company

**Lucifer Box** · 6 February 2006, 16:31

As with any expense, only if it is incurred wholly and necessarily as part of your job, and I think you will struggle to convince a tax inspector that was the case.

**ratewhore** · 6 February 2006, 16:58

I'd speak to your accountant if I were you. I took a Masters and paid it through my business. Admittedly it was a Masters in Information Security which is specific to my business...

**Lucifer Box** · 6 February 2006, 17:15

Exactly, ratewhore, your case is a different kettle of fish. Pickle just wants to bang an expensive MBA through the books and I think he will struggle to swing that. As you say though, as it is a lot of money at stake he needs to ask a professional rather than a bunch of know-nothing nobodies like us.

**morphman** · 6 February 2006, 19:25

close down the company and take your 75% taper releif in addition to using your tax free allowance, as you wont be working, as well as using her UK tax free allowance, as she wont be working.. U can use that to fund anything u like then.

**expat** · 6 February 2006, 23:31

Originally posted by Lucifer Box

As with any expense, only if it is incurred wholly and necessarily as part of your job.

I thought "wholly and necessarily" was for employees?

**Lucifer Box** · 6 February 2006, 23:50

Expat, you aren't seriously suggesting that as the director of a limited company you can claim anything you like as an expense are you?

**Mordac** · 7 February 2006, 01:12

I'm no expert, obviously, but what's to stop you forming the US equivalent of a Ltd Co, lending it the cost of your MBA, taking the MBA and then dissolving the US company. As far as Hector is concerned, an overseas investment failed to pay off.
Uncle Hector might come after you, but if you don't earn enough to get caught in his radar, you might just get away with that as well. A quick call to a US tax expert (you'll almost certainly need one anyway) will confirm.
Probably full of holes, so shoot away...

**expat** · 7 February 2006, 08:59

Originally posted by Lucifer Box

Expat, you aren't seriously suggesting that as the director of a limited company you can claim anything you like as an expense are you?

No indeed, may the thought perish! But AIUI the test is less stringent for a company than for an employee. For example, it must be wholly for the business (or it is not wholly allowable) but it is, within reason, not necessary to justify the Company's decision as to whether it is necessary.

**boredsenseless** · 7 February 2006, 09:08

Originally posted by expat

No indeed, may the thought perish! But AIUI the test is less stringent for a company than for an employee. For example, it must be wholly for the business (or it is not wholly allowable) but it is, within reason, not necessary to justify the Company's decision as to whether it is necessary.

Actually so long as you still pay corporation tax on it as though it was profit (i.e. not using it as an expense only as a non-allowable purchase) you can spend it on what the hell you like.

Given that CT is only 19% (and if its sat in the bank from previous years you probably have already paid it) You can just use it. Obviously the LTD needs to enter into the contract with the uni, you can't let it touch your account or fingers for even a second.

May have to be careful about benefit in kind, but you'll be domiciled and resident in NY then so its their laws not ours you need to concern yourself with

MBA costs through the company