Reply to: Campany to pay for my Child Education

[LisaContractorUmbrella]

I would don my dickiebow and cuffs attire but alas, I fear I maybe sued by the Chippendales for IP infringement.

I think that's a serious concern well addressed .

[LisaContractorUmbrella]

Here you go ladies....

You are the man!

[northernladuk]

Visions of NLUK in a butler uniform

Can we have some cucumber sarnies too please Mr NL?

I would don my dickiebow and cuffs attire but alas, I fear I maybe sued by the Chippendales for IP infringement.

[northernladuk]

Never mind love - see if NLUK will make us a cup of tea instead (could we have a nice cup of tea smiley do you think?)

Here you go ladies....

[Clare@InTouch]

Never mind love - see if NLUK will make us a cup of tea instead (could we have a nice cup of tea smiley do you think?)

Visions of NLUK in a butler uniform

Can we have some cucumber sarnies too please Mr NL?

[LisaContractorUmbrella]

I can't see it.

Unless you have part of your personal allowance free to use against the BIK. But then that would apply to salary too. Maybe he's adding in childcare vouchers.....?

Confused too!

Never mind love - see if NLUK will make us a cup of tea instead (could we have a nice cup of tea smiley do you think?)

[Clare@InTouch]

I would go back to your accountant or possibly find a new one. If treated as a BIK so that tax and NI are payable on it there can be no relief. (am I missing something here people )

I can't see it.

Unless you have part of your personal allowance free to use against the BIK. But then that would apply to salary too. Maybe he's adding in childcare vouchers.....?

Confused too!

[LisaContractorUmbrella]

by my accountant:

"The company would pay national insurance on the expense and I would pay tax, but would give some relief on the expense but not 100%"

But I dont know by how much . . . . .

Also, If I didnt come to norway to fulfil the position then the business would lose the contract . . . hence is that not a benfit to the business?

Regards

Lee

I would go back to your accountant or possibly find a new one. If treated as a BIK so that tax and NI are payable on it there can be no relief. (am I missing something here people )

[Clare@InTouch]

by my accountant:

"The company would pay national insurance on the expense and I would pay tax, but would give some relief on the expense but not 100%"

But I dont know by how much . . . . .

Also, If I didnt come to norway to fulfil the position then the business would lose the contract . . . hence is that not a benfit to the business?

Regards

Lee

That's where duality of purpose comes in. If something has a business use but also benefits you, it's a benefit in kind and you'll be taxed on it. Otherwise your argument could be taken to a ridiculous extreme - the company should pay my food because I'd die without food and therefore it's in the company's interest. It should pay my mortgage because I need a roof. It should pay for my yoga tuition because I need stress relief. It should pay for my dog because I'd be sad without it etc etc etc.

[northernladuk]

by my accountant:

"The company would pay national insurance on the expense and I would pay tax, but would give some relief on the expense but not 100%"

But I dont know by how much . . . . .

Also, If I didnt come to norway to fulfil the position then the business would lose the contract . . . hence is that not a benfit to the business?

Regards

Lee

But you can make alternative arrangements for your child, you could send them to boarding school or have them live with parents. He/she does not directly benefit your business. Again whether you take the role or not is your decision based on your personal circumstances. Those personal circumstances are nothing to do with a business, it was your choice. Just because something is not a stopper it does not make it a benefit.

Did he mention BiK to you? Why do you not go back to him and ask him to explain to a level that you fully understand? Seems odd you pay someone a decent amount of money to then be fobbed off with an answer you don't fully comprehend.

[Clare@InTouch]

It would be a benefit in kind, so you'd pay tax and NI as if it were earnings. The company would then pay Employer's NI as if it were earnings. You may as well take salary.

If you wanted to pay for someone else's kids on the other hand, there's an allowance for that. Something like £18k for school fees if it's not your own child. I'll try to find it, one sec.....

Here you go - http://www.hmrc.gov.uk/manuals/eimanual/EIM06237.htm

It's employees and education fees.

[leemof]

by my accountant:

"The company would pay national insurance on the expense and I would pay tax, but would give some relief on the expense but not 100%"

But I dont know by how much . . . . .

Also, If I didnt come to norway to fulfil the position then the business would lose the contract . . . hence is that not a benfit to the business?

Regards

Lee

[LisaContractorUmbrella]

Hello,

Regarding my childs private eduation, I'm thinking about having my company pay for the school fees whilst I'm based out in Norway. My thoughts are paying via the company accounts would prevent taking the money out and into my personal account, then paying for it personally, and thus adding to my overall tax implication calculation etc.

I'm aware that this company payment would be recorded on my P11 but I've been told that it would be financially benificial. Does anybody have any comparable like for like expamples I could use, for instance the tax implications of paying it personally or via the company??

Regards

Lee

Told by whom??

[northernladuk]

Hence the reason for the question.

Having said that it was stated that because the 'business' has sent me abroad, it can be claimed in addition to relocation costs etc

What did your accountant advise?

EDIT :

Campany to pay for my Child Education

If your child is doing basic English ask your accountant if you can claim for you attending as well while you are at it

[leemof]

Hence the reason for the question.

Having said that it was stated that because the 'business' has sent me abroad, it can be claimed in addition to relocation costs etc