Reply to: PCG

[Notascooby]

kingcook is right

The FaQQer is right in that regard...

[TheFaQQer]

northernladuk is right about ol' minstrel being right.

I say PCG+

kingcook is right

[Mr.Whippy]

Would people genearlly recommend membership?

Yes, as all the others have said, without a doubt.

PCG+ is the way to go.

[malvolio]

I can't help thinking some people aren't separating company income from personal income here. If you can't distinguish between BIKs and CT, you're in trouble.

As for the PCG thing, it comes down to PCG not wanting to submit their membership list to HMRC. Can't think why that would be a problem...

[Notascooby]

Check out what some of our accountant posters are claiming...

http://forums.contractoruk.com/accou...ml#post1464394

I'm happy with the £150 annual party - already spent that....

It's what can you expense that isn't tax deducatable....so I thought client entertainment was a big no-no....but if I can save 25% as it's not from a div, then great - I know, I know - ask my accountant....

I may just do that!

Oh - just joined PCG + - to keep things back on track

[northernladuk]

Perfectly allowable as a non-BIK personal expense. Not allowable against CT. Don't ask why, the explanation is long and convoluted and goes back to a Trade Union case from 1910.

Teachers get tangled up in this with their professional bodies and union mix as well. A friend was able to claim tax back for some and not others. I guess everyone else does, I just know the teacher example.

[northernladuk]

Check out what some of our accountant posters are claiming...

http://forums.contractoruk.com/accou...ml#post1464394

[minstrel]

Does hookers and coke (eerm I mean client entertaining) count as a benefit in kind?

Only if you personally receive the benefit.

Go with a contractor mate. You pay for some entertainment for your mate, he pays for some entertainment for you.

[Notascooby]

Correct.

If you put £10k through your business for hookers, champagne and PCG+ membership, you have to pay CT on it, but it's effectively allowing you to get an additional £10k out of your business at 20% CT rather than distributing as higher rate tax dividends.

Right - I'm straight back up to the brothel to get a damn receipt! That's what tipped me into the 40% in the first place.....

Does hookers and coke (eerm I mean client entertaining) count as a benefit in kind?

[minstrel]

Right where's NLUK?

What is the benefit of putting through an expense through the books if not allowable against Tax.

e.g. Client entertainment, PGC+, can't think of another....

Is it, that I pay for this from the company account but as I've not drawn this as a div, it doesn't count towards my 40% threshold, or in my case, when already above the 40%, saves 25% tax effectively?

Correct.

If you put £10k through your business for hookers, champagne and PCG+ membership, you have to pay CT on it, but it's effectively allowing you to get an additional £10k out of your business at 20% CT rather than distributing as higher rate tax dividends.

[minstrel]

Perfectly allowable as a non-BIK personal expense. Not allowable against CT. Don't ask why, the explanation is long and convoluted and goes back to a Trade Union case from 1910.

That's always seemed strange to me. (Although I accept it is correct and accountant agrees too.)

Presumably it's to do with PCG being a kind of union and their being CT restrictions on union fees.

Would it not be possible for PCG to split the subscription so it is £10 membership fee and £110 for the benefits package? Certainly the additional £100 for 'Plus' membership would seem to be for additional insurances etc rather than union fees.

[Notascooby]

Perfectly allowable as a non-BIK personal expense. Not allowable against CT. Don't ask why, the explanation is long and convoluted and goes back to a Trade Union case from 1910.

Right where's NLUK?

What is the benefit of putting through an expense through the books if not allowable against Tax.

e.g. Client entertainment, PGC+, can't think of another....

Is it, that I pay for this from the company account but as I've not drawn this as a div, it doesn't count towards my 40% threshold, or in my case, when already above the 40%, saves 25% tax effectively?

[malvolio]

Is the wink because it's not an allowable expense?

Perfectly allowable as a non-BIK personal expense. Not allowable against CT. Don't ask why, the explanation is long and convoluted and goes back to a Trade Union case from 1910.

[Notascooby]

If I was ever to return to contracting in the UK, I'd join immediately. And claim the dues through expenses.

Is the wink because it's not an allowable expense?

[NotAllThere]

If I was ever to return to contracting in the UK, I'd join immediately. And claim the dues through expenses.