Reply to: IPSE Membership on P11D

[malvolio]

So would I. IMO it's a legal fee. For contract creation and legal assistance in various scenarios.
If I closed my company I'd let it expire, along with any insurances.

It's not a BIK but it is not deductible against CT. The reasons why are complex but factually and legally correct.

HTH...

[Lance]

This (my company) year just gone, ClearSky has declared IPSE non tax deductible.

The year previous to last, they had included as tax deductible.

Must admit, prior to this notification, and searching for this thread, I would Always have assumed it to be tax deductible.

So would I. IMO it's a legal fee. For contract creation and legal assistance in various scenarios.
If I closed my company I'd let it expire, along with any insurances.

[simes]

As mentioned in post #16 up there ^^ somewhere.

If paying dividends above basic rate then you'd effectively save 22.5% of the membership fee amount in tax due. Even if you limit dividends to stay in the basic rate band it does allow the company to pay out more before you hit that limit.

This (my company) year just gone, ClearSky has declared IPSE non tax deductible.

The year previous to last, they had included as tax deductible.

Must admit, prior to this notification, and searching for this thread, I would Always have assumed it to be tax deductible.

[Contreras]

Also, seeing as it is not allowable for CT purposes, what is the benefit of having it in the company name? That you're avoiding having to pay for it out of pocket? Thanks.

As mentioned in post #16 up there ^^ somewhere.

If paying dividends above basic rate then you'd effectively save 22.5% of the membership fee amount in tax due. Even if you limit dividends to stay in the basic rate band it does allow the company to pay out more before you hit that limit.

[Zero Liability]

Sorry to revive this. Regarding putting it in the company's name, is it a fairly simple matter to then transfer it (or QDOS's fee insurance) to your own name upon winding up the company? Also, seeing as it is not allowable for CT purposes, what is the benefit of having it in the company name? That you're avoiding having to pay for it out of pocket? Thanks.

[TheFaQQer]

Its got

Name
Company at the top

Details

Company - IPSE membership;

Mine has the company name under the "Item Description" section, so it's a company membership not a personal one.

[northernladuk]

There is a lovely long argument about this in the thread below. Granted it's from 2008 but I doubt the rules have changed and I still can't see it on the Gov's list of Approved Professional Organisations as linked in one THE PUMA's posts... Wonder where he's gone BTW...

http://forums.contractoruk.com/accou...5-expense.html

[psychocandy]

If the membership is assigned to your company, it's fine. If it's in your name, it isn't. As MS suggested, login to the IPSE website and check one of your invoices.

Its got

Name
Company at the top

Details

Company - IPSE membership;

[jamesbrown]

Oops sure for the past few years I've paid for it personally and then claimed it as an expense from the company.

Guess this is not right?

Blaming accountant here now :-)

If the membership is assigned to your company, it's fine. If it's in your name, it isn't. As MS suggested, login to the IPSE website and check one of your invoices.

[psychocandy]

Oops sure for the past few years I've paid for it personally and then claimed it as an expense from the company.

Guess this is not right?

Blaming accountant here now :-)

[mudskipper]

Yes my Accountant said the similar, doesn't matter if you paid IPSE direct from your Co. or paid personally and claimed expense. What's important is if the membership is in my name or company's. My name meaning BIK.

I checked with IPSE as my membership card has my name on it, but they say membership's in the company name so not declaring on P11D.

Download your invoices from myIPSE - mine had the company name on.

[foxes1884]

Accountant confirmed that if invoice is made out to company (it is) then it doesn't need to be declared.

Yes my Accountant said the similar, doesn't matter if you paid IPSE direct from your Co. or paid personally and claimed expense. What's important is if the membership is in my name or company's. My name meaning BIK.

I checked with IPSE as my membership card has my name on it, but they say membership's in the company name so not declaring on P11D.

[TheCyclingProgrammer]

I never declare mine on P11D. Always put through business, with invoice in company name, but disallowed for CT purposes for reasons explained on here numerous time. If it had to go on the P11D, I'd probably just pay for it personally to avoid the hassle of having to do a P11D as it would be the only thing on there!

[mudskipper]

Accountant confirmed that if invoice is made out to company (it is) then it doesn't need to be declared.

[TheFaQQer]

Yes, and opinions may vary. However, if there's some disagreement or uncertainty, I'd prefer it was stated upfront, i.e. it's "your call". In any case, I've made my call, and I'd be happy to stand by it as a business expense. It's worth remembering, though, that IPSE has evolved over time, and I can foresee potential BIK issues with some of the IPSE Futures offerings (add-ons, not the membership fee) so, unless you're confident in your position, including it in the P11D seems like a reasonable default.

I agree - I've made my decision not to declare it, and I'm happy with that.

Look on the bright side - if HMRC come calling, you can use that IPSE membership to get them to talk to HMRC instead