Ltd company, no employess, two directors. Director buys shirts and ties for business wear. I know they are not allowed for tax purposes but do I put them through the accounts as a business expense for them to be disallowed later or put them to DLA?
There is an exception in that if the tie displayed a conspicuous relevant logo then it would be allowed as its purpose would be for work and nothing but work.
That aside as I say its straight off to the DLA with it.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Now if only my ex wives and girlfreinds thought that way, lol.
no problems Elizabeth, always glad to help.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I have a client who had bought some shirts with his logo on them especially for an event, so like Shaun said because they are just for the business and you wouldn't wear them out anywhere else I put them through as expenses.
@Shaun, you have too many ex-wives and girlfriends!
I've stopped marrying them now though. After much expense and a lot of therapy my addiction to wedding cake has finally been cured.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
For company directors or employees earning at a rate of £8,500 or more per year, the value to use is the higher of: the clothings second-hand value when you give it to your employee the initial cost to you of the clothing http://www.hmrc.gov.uk/paye/exb/a-z/c/clothing.htm#x5
The OP said they were directors, so if the second hand value is lower than the initial cost of providing the clothing, then the BIK is on the initial cost of the clothing.
(Also worth considering if the directors are also the co shareholders - if the directors are in/above the basic tax rate band, then the directors' personal tax on the BIK and the co's class 1A NICs, would outweigh the CT saving)
