Random/lesser known expenses that can be put through your limited...

[TheFaQQer]

That made me think - if I have a software company and I buy some pizza for my coders staying late, surely I should be able to claim that?

The reason I am asking is as I subcontract more and more of my work, I really starts to look more like a software house rather than a one-man Ltd, which Ithink is great, but generally I should be able to claim more somehow, right?

It's claimable.

Whether it needs to be declared as a BIK for the employees, is a different matter. So your "generosity" could help increase their tax burden.

Some years back, a large software company that I know, gave a long-term reward of an expensive pen every five years. In some countries, the local office paid the taxable benefit for the employee so it was a real gift. In others, they didn't - the Swedish lot weren't too impressed that a "gift" from the company, that they didn't really want, cost them money.

[TheFaQQer]

The pizza is an investment to get them to work harder not an expense .

No - it's a rapidly depreciating asset.

[craig1]

Can we have a slight reality check here...

You can expense anything you like. The actual question you should be asking is nothing to do with YourCo but with your personal taxation: "Does this expense claim give rise to a BIK?". Which it will if the expense is not wholly and exclusively for the needs of the business. Plus, of course, you do actually have to spend the money in the first palce.

As for what's the worst that can happen, I think the term for tax evasion still starts at repaying the tax, interest and penalties plus a big fine and/or two years. Still want that tiger?

The wholly and exclusively test can be a bit misleading though, it's about significant use for many items, see the examples here for instances where a BIK claim isn't raised despite there being substantially more private use than business.

It's no wonder so many accountants and tax lawyers are kept in gainful employment!

[NotAllThere]

Ok ok! Wrong forum, I get it! Jeeeeeezzzzzz

Not any more.

[SueEllen]

It's claimable.

Whether it needs to be declared as a BIK for the employees, is a different matter. So your "generosity" could help increase their tax burden.

Some years back, a large software company that I know, gave a long-term reward of an expensive pen every five years. In some countries, the local office paid the taxable benefit for the employee so it was a real gift. In others, they didn't - the Swedish lot weren't too impressed that a "gift" from the company, that they didn't really want, cost them money.

I know in some of the Nordic countries the tax laws are such that even if the employer wanted to pay the employees taxable benefit on the gift or any other benefit, they legally can't.

It's a case of checking the tax laws throughly before being "nice" to employees.

[Greg@CapitalCity]

It's claimable. Whether it needs to be declared as a BIK for the employees, is a different matter. So your "generosity" could help increase their tax burden.

I thought I read the work was sub-contracted - so these coders aren't employees, but contracted suppliers? I which case why not get the supply of pizza worked into their contracts - they buy their own pizza, and bill you for it along with their usual hourly/day rate.

[TheFaQQer]

I thought I read the work was sub-contracted - so these coders aren't employees, but contracted suppliers? I which case why not get the supply of pizza worked into their contracts - they buy their own pizza, and bill you for it along with their usual hourly/day rate.

Surely even in that case, they would still be a taxable benefit, since their employer is providing the pizza?

For the sake of a couple of quid, is it really worth arsing about with this, though??