Claiming MBA fees from Limited company

[russell]

The rules are vague here, and my modus operandi when rules are vauge is to interpret it as I see it, if Hector sees it differently then he can let me know if he ever investigates.

[malvolio]

The rules are vague here, and my modus operandi when rules are vauge is to interpret it as I see it, if Hector sees it differently then he can let me know if he ever investigates.

No, the rules are perfectly clear: training cost is not a BIK if it enhances your primary trade, eveything else is. YourCo has one line of trade, so what is allowable is perfectly plain.

IBM has many lilnes of trade, so can tre-train its staff as necessary.

Now do you understand the difference? More importantly, does your accountant?

[russell]

No, the rules are perfectly clear: training cost is not a BIK if it enhances your primary trade, eveything else is. YourCo has one line of trade, so what is allowable is perfectly plain.

IBM has many lilnes of trade, so can tre-train its staff as necessary.

Now do you understand the difference? More importantly, does your accountant?

Software projects cover a wide gamut of domains, I am currently working on one that requires lots of Math but this is in house to my co not for a client. To many grey areas I'm afraid.

[malvolio]

Software projects cover a wide gamut of domains, I am currently working on one that requires lots of Math but this is in house to my co not for a client. To many grey areas I'm afraid.

If it's in house, it's not your trade; "trade" means someone else is paying for your expertise.

[LisaContractorUmbrella]

It is not often I say this but listen to Mal on this one Russell - he's right (Oh the shame )

[russell]

If it's in house, it's not your trade; "trade" means someone else is paying for your expertise.

This will develop into a product that a client will buy, so it will be trade.

[ASB]

This will develop into a product that a client will buy, so it will be trade.

The key word is "will". It is not "is".

Like you I always took a fairly cavalier attitude and would claim the stuff and hope for the best, but that doesn't make it correct. By all means do this, you don't have to justify it to anybody here, just HMIT at the point you get an investigation.

[russell]

The key word is "will". It is not "is".

Like you I always took a fairly cavalier attitude and would claim the stuff and hope for the best, but that doesn't make it correct. By all means do this, you don't have to justify it to anybody here, just HMIT at the point you get an investigation.

Yeah that's what I said before, If the off chance I get investigated, the worst that can happen is I will pay tax on the expenses, worth the risk.

[ASB]

Yeah that's what I said before, If the off chance I get investigated, the worst that can happen is I will pay tax on the expenses, worth the risk.

Believe me that's nowhere near the worst that can happen. I eventually negotiated 20% penalties (my accountant though I got off very lightly), plus statutory interest on the elements I had to concede to HMIT.

[malvolio]

Yeah that's what I said before, If the off chance I get investigated, the worst that can happen is I will pay tax on the expenses, worth the risk.

Fine, do it your way. It's failing in your duty both as a director and as a taxpayer knowingly to make a false declaration. but WGAS, it's your court case.