I would think that it wouldn't be classed as a business expense as the physio will have a positive effect on his personal life as well, not just help him at work. Expenses are supposed to be wholly for business purposes. Someone else will probably have a more definite answer for you, but that's my initial feeling.
Hmm. I can definately see that point that it helps his life in general outside of business. So I was mulling over apportioning appropriately. I would feel bold enough to say it was an injury incurred at work and without the physio he wouldn't work and that therefore the cost could be directly attributable to business. As he'd be at home doing nothing otherwise!
It's one of those where I reckon in this situation my reasoning seems acceptable. One where HMRC would say personal only in most cases. But where I'll probably split it 50/50 so that if ever the books were investigated, I'm showing some prudence...!
Sorry but I am going to have to disagree and say no, it is not allowed.
The courts decided that medical treatment was not wholly and exclusively an expense (some exclusions including cosmetic surgery for someone like a model) but more for the wellbeing of the individual (regardless of were, or how the injury was incured) and pretty sure there will be a duality of purpose.
I think this is one of those times when an insurance policy would have been wise, to cover for treatments and loss of earnings etc.
The main bits are covered in the following link and the pages that follow the opening page.
Interesting it was. So my thoughts of being conservative and prudent with apportioning costs is in total contradiction to the principle of duality. If I was to apportion the costs it admits an element not for business and therefore removes itself from being wholly and exclusively for trade.
Well then. There was a small part where it seemed there may be an occasion where it is wholly allowable, but I'll need to read over it more in context in the manual to get a complete understanding.
So on a related though slightly different note, would you put this down as a drawing, or have it as a disallowable expense? And was wondering if there were other occasions where something would be better going through the books as either a drawing or a disallowable expense? As, for the tax return is it not good for a little to show that some things are being disallowed and that some thought has gone into an otherwise straight forward return?
I think if you can clearly identify a payment as being personal and not related to the business, such as the above situation, I would put it directly to Drawings.
If you spent lots on say business entertainment you may want to see it on the P&L account but its disallowable when calculating the tax, so this would be shown as a disallowable expense.
