Reply to: Cheaky Expense

[miss marple]

A few years ago I bought a futon to use in my 'office' (OK spare bedroom) and put it through the company books.

The accountant queried it but let it go through when I told him it was my 'thought couch'

[The AntiChrist]

A benefit in kind is basically a taxable perk - ie. something you receive from the company other than money on which the vaue should be taxed. Examples are a company car which you're allowed to use privately.

Re AGM's, limited can dispense with these by passing elective resolutions and filing them at Companies House:-

"5. Elective resolutions

These may be passed by private companies only and for five specific purposes - see below. 'Elective resolutions' must be passed by unanimous agreement in general meeting of the company by all the members entitled to attend and vote at the meeting in person or by proxy. A period of 21 days' notice of the resolution(s) must be given unless all members entitled to attend and vote at the meeting agree to a shorter period.

Elective resolutions may be used for the following purposes only:
to amend the duration of the authority of directors to allot securities;
to dispense with the holding of annual general meetings;
to dispense with the laying of accounts and reports before the members in general meeting;
to allow the majority required to authorise short notice of a meeting and notice of a resolution to be reduced from 95% to a lower figure but not less than 90%;
to dispense with the annual appointment of auditors. "

[RockyBalboa]

What does 'benefit in-kind' mean?

Thanks.

[Ardesco]

You don't have an AGM allowance per se. I just make sure that I hold my company AGM somewhere that has the facilities to provide me with the workspace I require and refreshments to keep us going while we discuss which direction to move the business in over the next year

[FiveTimes]

If you are a LTD co you should be having an AGM. You have to approve your accounts and set out the business plan for the next year etc.

Make sure to take minutes and type them up so that you have proof that the AGM happened.

If I remember correctly there is an allowance of £250 for each employee and they can also invite a guest. I'm sure one of the accountants will provide more details (SJD or Nixon Williams).

Does the AGM allowance come out of the £150 per employee ? Or can this be treated as a seperate expense ?

Does anyone have a blank AGM meeting document that can be re-used by others with a slight change ?

[TheFaQQer]

You can claim for anything as long as the expense was wholely and solely incurred as a result of your business activities and you can demonstrate this to HMRC when they ask.

I'll extend that - you can claim for anything. Just be prepared to pay tax on it as a benefit in kind.

I think it is £150 per employee

It's £150 per employee, and you can bring a guest. It doesn't have to be one big bash, either - it can be a series of little ones. Thing to be careful of is if the bash costs £175 each, then you pay tax on the whole lot, not the bit over the £150.

[ratewhore]

I think it is £150 per employee, not £250.

As far as business entertainment is concerned, you can entertain clients (existing or prospective) as long as their are valid business reasons for doing so. Remember though, that business entertainment is not tax deductable as far as CT is concerned...

[Ardesco]

If you are a LTD co you should be having an AGM. You have to approve your accounts and set out the business plan for the next year etc.

Make sure to take minutes and type them up so that you have proof that the AGM happened.

If I remember correctly there is an allowance of £250 for each employee and they can also invite a guest. I'm sure one of the accountants will provide more details (SJD or Nixon Williams).

[Cooperinliverp00l]

There is only me and my partner (company sec) in my ltd company. Can i still have AGM and christmas parties ? is there a certain amount allowed for xmas bash ?

[ASB]

Foreign entertainment is generally chargeable.

[Ardesco]

I am a newbie contractor, and one thing people keep asking me in restaurants/pubs is, "why don't you put it down as business expenses" (whilst sniggering).

I reply that my accountant has made it perfectly clear that business entertainment is totally out of the question as an expense. Well, I don't say those words exactly, but you get the gist.

I was wondering why so many people (especially people older than me) keep trying it on? Did 'business entertainment' used to be an allowable expense? If so, I can see why it was soon clamped down on!

Well I make sure I go out for an AGM every year, and then you have your crimbo party allowance (that can be used aty any point in the year)

[Barriebazg]

Cheeky

[Burdock]

I am a newbie contractor, and one thing people keep asking me in restaurants/pubs is, "why don't you put it down as business expenses" (whilst sniggering).

I reply that my accountant has made it perfectly clear that business entertainment is totally out of the question as an expense. Well, I don't say those words exactly, but you get the gist.

I was wondering why so many people (especially people older than me) keep trying it on? Did 'business entertainment' used to be an allowable expense? If so, I can see why it was soon clamped down on!

[DaveB]

You can claim for anything as long as the expense was wholely and solely incurred as a result of your business activities and you can demonstrate this to HMRC when they ask.

Laptop, maybe, if it was bought as part of the setup of the Ltd Co and is used in connection with the Co. business.

Sofa, try it if you like but dont be surprised if you get a heft tax bill as a result and spend the next few years picking tax inspectors out of your arse.

[ASB]

Hello all,
would it be cheaky if I put through a new sofa as an expense?

I'll be looking to move into my house next year and would be looking to put through all my office furniture through the expenses and was thinking if I could probably get a sofa for the living room

Also, I purchased a laptop before I set up my limited company and wanted to know whether I can claim the money back?


Nav

There is absolutely no problem with your company buying a sofa and putting it in your living room.

It might be wise for you to look at the tax treatment of assets placed at employees use though.

Your accountant will tell you the basis on which the compnay can acquire the laptop. It depends how long before commencement of business it was acquired and why.