Campany to pay for my Child Education

**JoJoGabor** · 29 May 2013, 13:27

How can you justify the company paying it? Its not wholly for benefit by the business.

**leemof** · 29 May 2013, 13:31

Hence the reason for the question.

Having said that it was stated that because the 'business' has sent me abroad, it can be claimed in addition to relocation costs etc

**northernladuk** · 29 May 2013, 13:34

Originally posted by leemof View Post

Hence the reason for the question.

Having said that it was stated that because the 'business' has sent me abroad, it can be claimed in addition to relocation costs etc

What did your accountant advise?

EDIT :

Campany to pay for my Child Education

If your child is doing basic English ask your accountant if you can claim for you attending as well while you are at it

**LisaContractorUmbrella** · 29 May 2013, 13:36

Originally posted by leemof View Post

Hello,

Regarding my childs private eduation, I'm thinking about having my company pay for the school fees whilst I'm based out in Norway. My thoughts are paying via the company accounts would prevent taking the money out and into my personal account, then paying for it personally, and thus adding to my overall tax implication calculation etc.

I'm aware that this company payment would be recorded on my P11 but I've been told that it would be financially benificial. Does anybody have any comparable like for like expamples I could use, for instance the tax implications of paying it personally or via the company??

Regards

Lee

Told by whom??

**leemof** · 29 May 2013, 13:40

by my accountant:

"The company would pay national insurance on the expense and I would pay tax, but would give some relief on the expense but not 100%"

But I dont know by how much . . . . .

Also, If I didnt come to norway to fulfil the position then the business would lose the contract . . . hence is that not a benfit to the business?

Regards

Lee

**Clare@InTouch** · 29 May 2013, 13:40

It would be a benefit in kind, so you'd pay tax and NI as if it were earnings. The company would then pay Employer's NI as if it were earnings. You may as well take salary.

If you wanted to pay for someone else's kids on the other hand, there's an allowance for that. Something like £18k for school fees if it's not your own child. I'll try to find it, one sec.....

Here you go - http://www.hmrc.gov.uk/manuals/eimanual/EIM06237.htm

It's employees and education fees.

**northernladuk** · 29 May 2013, 13:44

Originally posted by leemof View Post

by my accountant:

"The company would pay national insurance on the expense and I would pay tax, but would give some relief on the expense but not 100%"

But I dont know by how much . . . . .

Also, If I didnt come to norway to fulfil the position then the business would lose the contract . . . hence is that not a benfit to the business?

Regards

Lee

But you can make alternative arrangements for your child, you could send them to boarding school or have them live with parents. He/she does not directly benefit your business. Again whether you take the role or not is your decision based on your personal circumstances. Those personal circumstances are nothing to do with a business, it was your choice. Just because something is not a stopper it does not make it a benefit.

Did he mention BiK to you? Why do you not go back to him and ask him to explain to a level that you fully understand? Seems odd you pay someone a decent amount of money to then be fobbed off with an answer you don't fully comprehend.

**Clare@InTouch** · 29 May 2013, 13:45

Originally posted by leemof View Post

by my accountant:

"The company would pay national insurance on the expense and I would pay tax, but would give some relief on the expense but not 100%"

But I dont know by how much . . . . .

Also, If I didnt come to norway to fulfil the position then the business would lose the contract . . . hence is that not a benfit to the business?

Regards

Lee

That's where duality of purpose comes in. If something has a business use but also benefits you, it's a benefit in kind and you'll be taxed on it. Otherwise your argument could be taken to a ridiculous extreme - the company should pay my food because I'd die without food and therefore it's in the company's interest. It should pay my mortgage because I need a roof. It should pay for my yoga tuition because I need stress relief. It should pay for my dog because I'd be sad without it etc etc etc.

**LisaContractorUmbrella** · 29 May 2013, 14:10

Originally posted by leemof View Post

by my accountant:

"The company would pay national insurance on the expense and I would pay tax, but would give some relief on the expense but not 100%"

But I dont know by how much . . . . .

Also, If I didnt come to norway to fulfil the position then the business would lose the contract . . . hence is that not a benfit to the business?

Regards

Lee

I would go back to your accountant or possibly find a new one. If treated as a BIK so that tax and NI are payable on it there can be no relief. (am I missing something here people

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Campany to pay for my Child Education