Originally posted by ittony
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Whether a company chooses to pay you expenses is up to it and you. This makes no difference to whether or not you individually can claim income tax relief. If the company does pay (the normal case of course)
- The company gets CT relief
- You get them charged to PAYE
- You get income tax relief on the legitimate ones
[Usually these last two steps simply cancel each other out]
- If the company doesn't pay then you get the relief.
So, if your marginal income tax rate is higher than the company CT rate you get more relief this way. There are a limited number of circumstances where this may be the case.
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