MA course fees - payable out of company? tax position?

[oldtimer45]

Hi, just wondering about this question.

I have a Daughter who is doing an MA at part of the University of London, and she owes half her course fees still.

Question is, would there be any way my Limited company could pay this for her in a way that would get any sort of tax relief, or be a valid expense or charitable donation or sponsorship or something? As the university is a charity I thought there might be a way.

She is 23, so could be made an employee if that would help?

Just a thought, as she is struggling and I don't want he rnot to finish her course (although arguably she should have got her finances sorted before starting)

Any help/ideas/advice welcome

[Craig@Clarity]

The questions to be asked is whether the course fees are wholly, exclusively and necessary for the purpose of the business? How will the company benefit financially from this?

For a donation to be allowable for tax purposes, it must be a recognised registered charity with HMRC.

Assuming that she has already paid for some fees herself and is not an employee already, the cost of the fees wouldn't be an allowable expense or deemed to be a bonus on succession of examination.

[northernladuk]

It's easy. Withdraw the money legitimately from you co via PAYE or dividends, pay what you owe, give it to her. Jobs done. No fear of getting caught defrauding HMRC and the threat of jail time completely gone.

Simples.

[MarillionFan]

Mmmm.

I've sponsored one of my nieces the last few years at Uni. I've done it as a payment through the LTD company for £1000 per year.

Not sure what the accountant did with it, but I just put it as sponsorship.

Don't know if that helps though.

[SueEllen]

Mmmm.

I've sponsored one of my nieces the last few years at Uni. I've done it as a payment through the LTD company for £1000 per year.

Not sure what the accountant did with it, but I just put it as sponsorship.

Don't know if that helps though.

Could you find out why this is an allowable expense MF please?

Cheers.

[Clare@InTouch]

There are specific rules for what counts as qualifying expenditure on sponsorship and donations here:

HM Revenue & Customs: Sponsoring a charity

[rmmc]

The questions to be asked is whether the course fees are wholly, exclusively and necessary for the purpose of the business?

Does not have to be necessary. Just "Wholly and exclusively" for the business purpose of the business.

[Craig@Clarity]

Does not have to be necessary. Just "Wholly and exclusively" for the business purpose of the business.

Why not?

[TykeMerc]

How do companies who give bursaries handle this issue? I know typically the recipients are employees in some fashion, but that's not always the case.

If there's a straight and proper way to do this then I'd be tempted to exploit it myself as I've one undergraduate child at the moment and 2 others who will be before too long.

[rmmc]

Why not?

Because the law does not contain the word "Necessary".