What to do with a refund?

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Goya replied

23 March 2007, 18:32
Originally posted by XLMonkey

As you're a higher rate taxpayer you're probably better off re-imbursing the company, paying the corporation tax then getting the money back when you take the capital distribution.

IMO, of course

That was the opinion I was slowly coming round to as well.
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XLMonkey replied

23 March 2007, 18:12
Strictly, you should re-imburse yourco for the refund that you got, or declare it as a benefit in kind and pay tax on it.

If (I assume so) you got the refund directly back into your bank account then it would show up on any tax investigation, so I don't think its a risk worth taking, particularly for such a large amount of money.

As you're a higher rate taxpayer you're probably better off re-imbursing the company, paying the corporation tax then getting the money back when you take the capital distribution.

IMO, of course
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Goya started a topic What to do with a refund?

23 March 2007, 17:39
What to do with a refund?

I purchased an annual train ticket a little while ago, as I was working in London & was planning to do so for the foreseeable future. Crazily, I then changed jobs a month later & got a refund back on the ticket (around £4500).

I did put the purchase of the ticket through my Ltd accounts, but have not got round to putting the refund back into my company accounts (ahem)

I'm now in the process of closing my Ltd & wondering if i's such a good idea to keep the cash & whether to put it back through the books. One concern is that it will get noticed by hector & I'll then get done for BIK (especially as I'm now in the high rate tax band).

Opinions please, oh wise ones
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