Photography Course: Expensable?

[Malcolm Buggeridge]

[QUOTE=LisaContractorUmbrella;1716253]

No, I got one and expensed it...

If you were happy to expense the camera (even though it could not be realistically considered a business expense) why are you worrying about expensing the course?

I haven't put this years accounts through yet Lisa so I may backtrack on that one!

[Ignis Fatuus]

IANAA but surely a business can expense something intended to bring in future profit? (by contrast with an employee, who may not expense something intended to get a different job).

[Epiphone]

Your company can pay for whatever it or its Directors wants it to pay for. Claiming that to reduce your Corp Tax is a different matter altogether. If you don't want to pay for it out of your personal pocket then yeah, make YourCo pay for it. Just don't claim it on the Corp Tax. How YourCo spends its money isn't a concern of HMRC - they only care what tax you're claiming and paying.

[Malcolm Buggeridge]

Your company can pay for whatever it or its Directors wants it to pay for. Claiming that to reduce your Corp Tax is a different matter altogether. If you don't want to pay for it out of your personal pocket then yeah, make YourCo pay for it. Just don't claim it on the Corp Tax. How YourCo spends its money isn't a concern of HMRC - they only care what tax you're claiming and paying.

In that case why not get my Ltd to pay for a whole raft of things that would reduce my personal tax liability?

[Mister Clark]

In that case why not get my Ltd to pay for a whole raft of things that would reduce my personal tax liability?

BIK

[Malcolm Buggeridge]

BIK

So, could they class my camera and course as BIK?

[northernladuk]

So, could they class my camera and course as BIK?

Most would argue that is all you can do with it but it is up to you. If you really believe if is wholly and exclusively for your business then just go ahead and do it. If your accountant agrees then jolly good.

It's your business, you make the decisions as it is your risk at the end of the day. The only thing I would say is look at the actual costs and remember you are only saving yourself 20% for this risk (plus being able to divi a little more) and then ask yourself if it is really worth it.. for a mega bucks contractor? I doubt it but it's your business.

[Mister Clark]

Most would argue that is all you can do with it but it is up to you. If you really believe if is wholly and exclusively for your business then just go ahead and do it. If your accountant agrees then jolly good.

It's your business, you make the decisions as it is your risk at the end of the day. The only thing I would say is look at the actual costs and remember you are only saving yourself 20% for this risk (plus being able to divi a little more) and then ask yourself if it is really worth it.. for a mega bucks contractor? I doubt it but it's your business.

WHS.

To answer your question, if its wholly and exclusively for business use then put it through the books and it won't be subject to any BIK so long as the tax man agrees with your reasoning should you be asked the question.

If it aint your gonna pay BIK on it. That's why you don't use your company to pay for a load of stuff - the tax man want's his pound of flesh and he is gonna get it one way or another.

The general themes of your posts seem to be ways you could reduce your personal tax burden (nothing wrong with that); if you look a bit more long term you can easily retain 85% of what you bill.

[Malcolm Buggeridge]

Most would argue that is all you can do with it but it is up to you. If you really believe if is wholly and exclusively for your business then just go ahead and do it. If your accountant agrees then jolly good.

It's your business, you make the decisions as it is your risk at the end of the day. The only thing I would say is look at the actual costs and remember you are only saving yourself 20% for this risk (plus being able to divi a little more) and then ask yourself if it is really worth it.. for a mega bucks contractor? I doubt it but it's your business.

Well, all I can say is that there is a genuine business motivation behind this.

if you look a bit more long term you can easily retain 85% of what you bill.

Long term? Please enlighten me Mr Clark...

[Alan @ BroomeAffinity]

[QUOTE=Malcolm Buggeridge;1716433Long term? Please enlighten me Mr Clark...[/QUOTE]

If I may: Salary circa £7,000; VAT Flat rate profit; spousal shareholding; withdraw up to max per annum before hitting 40%; pension contribution; tax efficient company closure. Some or all of these.