Claiming Sponsorship Expense for Tuition

[mce]

Hi,

If I am an IT contractor through my limited company, can my company sponsor my wife's university tuition fee for her phd research study and book it as a sponsorship expense for the company?

Thanks in advance for any helpful replies.

Regards,

[northernladuk]

Will this benefit the company? Is it anything to do with the companies main business?

[mce]

Will this benefit the company? Is it anything to do with the companies main business?

It is not related to the company's main business and there is no direct benefit to the company.

[cojak]

Then I can't see it getting past your accountant or the tax man.

If it was related then you'd have a valid argument, if it isn't then it's a tax dodge and will be seen as such.

[Wanderer]

can my company sponsor my wife's university tuition fee for her phd research study and book it as a sponsorship expense for the company?

It might be difficult since your wife is a connected person. The test is probably "Would you sponsor a stranger to do the PHD research? What benefit would it have for your company?"

If you haven't already, you can make your wife a shareholder, pay he a salary under the TAX/NI threshold and split the dividends between you to avoid higher rate tax (if applicable).

[northernladuk]

It might be difficult since your wife is a connected person. The test is probably "Would you sponsor a stranger to do the PHD research? What benefit would it have for your company?"

If you haven't already, you can make your wife a shareholder, pay he a salary under the TAX/NI threshold and split the dividends between you to avoid higher rate tax (if applicable).

....but make sure she is adding value to your business. She has to demonstrate that she is working for you to earn that else it looks very suss and will cause trouble should you get investigated.

[b0redom]

I have shares in BP. I'd best go and do some voluntary work for them to show I'm adding value to the business.

There is no requirement to have your wife employed in order to pay her dividends.

[ASB]

Hi,

If I am an IT contractor through my limited company, can my company sponsor my wife's university tuition fee for her phd research study and book it as a sponsorship expense for the company?

Thanks in advance for any helpful replies.

Regards,

Whilst it is unlikely to be offsetable against tax it is perfectly OK for you to sponsor her fee. However it is important to ascertain from you accountants the resultant tax treatment.

[Wanderer]

I have shares in BP. I'd best go and do some voluntary work for them to show I'm adding value to the business.

Are you married to a director of BP who gave you shares at a nominal price which were not available to the general public and paid 10s of thousands in dividends then?

If so, then please take your car down to the beach and give it an oil change.

[northernladuk]

I have shares in BP. I'd best go and do some voluntary work for them to show I'm adding value to the business.

There is no requirement to have your wife employed in order to pay her dividends.

Was pointing the fact he mentioned paying her a salary not the dividends bit. Dam pedants lol...