Photography Course: Expensable?

[northernladuk]

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

There is your answer then. And if this is the case don't forget to put in for larger microsims if needed, photoshop and any other connected costs. If you are gonna do it then do it properly.

[stek]

Photography Course: Expensable?

Aren't all plans B's caught by this then unless they earn from day one?

[Mister Clark]

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.

WHS - but you have to take a longer term view of things or be married to get that sort of retention.

Personally I am not married so pay salary circa 7,500, dividends up to the 40% threshold and pension. I tend to take 6 months of in every 3 years and drawn down on the retained profits.

I have a large cash surplus at the moment and will be closing my company down and applying for entrepreneurs relief. If that does not get challenged by HMRC when I file my personal tax return for the year I should have ended up, at a guess, 82/83% retention over 6 years even when CG is applied and the fees for the administrators are accounted for.

[formant]

I think I'd benefit from the structure of a course. They also have tutors to give feedback on progress. If they do as they claim, the ones I've looked at shouldn't be a waste of money.

Even with a course, I'd still try to find a hands-on/in-person one. Problem with photographers is that a lot of them only go into training because they don't make enough from photography alone (often related to just not being that great). So do choose wisely, whichever option you go for.

If you're not on talkphotography.co.uk yet, you probably should be. Many people there would be happy to advise on which courses to try and which ones to give a miss!

[SueEllen]

Aren't all plans B's caught by this then unless they earn from day one?

Depends what the plan B is and how it links in with your current skills.

[Jessica@WhiteFieldTax]

If you are doing web work already then to me a photography course isn't out of the question; I see a lot more tenuous deductions!

[Jessica@WhiteFieldTax]

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).

No; a lot of items can't be expensed even if they are to generate funds, eg capital costs of a franchise, new skills type training for controlling directors/shareholders - anomaly, in so far as similar training for a unconnected member of staff would go through (not unconnected: your kids uni fees don't fit in here!)

[eek]

No; a lot of items can't be expensed even if they are to generate funds, eg capital costs of a franchise, new skills type training for controlling directors/shareholders - anomaly, in so far as similar training for a unconnected member of staff would go through (not unconnected: your kids uni fees don't fit in here!)

I wasn't planning to pay their uni fees through the company. Instead I was going to pay them a lot for doing very little over the summer hols ala a few MPs five years back.

[Jessica@WhiteFieldTax]

I wasn't planning to pay their uni fees through the company. Instead I was going to pay them a lot for doing very little over the summer hols ala a few MPs five years back.

Only works if you are a MP; for mere mortals 25.8% NI plus the kids own tax eliminates the savings - unless you you just make them a temporary shareholder for the summer, give them shares in June, gift them back in September - that's a goer!

[eek]

Only works if you are a MP; for mere mortals 25.8% NI plus the kids own tax eliminates the savings - unless you you just make them a temporary shareholder for the summer, give them shares in June, gift them back in September - that's a goer!

Could I pay them via an employees beneficial trust running in the isle of man using fake loans in strange currencies? or do you think HMRC may see through it?