Medical screening
Discussion
As a two man band, does anyone think that having periodic medical screening of the two of us would be a legitimate business expense?
Effectively if one of us had a serious medical problem not caught and nipped in the bud it would probably lead to the business going under if one of us couldn't work for an extended period. I have looked at 'keyman' insurance in the past but that is rather like bolting the stable door after the sick horse has bolted.
Are you a company or a partnership?
Medical costs of partners/directors are invariabley looked on by the Revenue as personal costs and therefore cannot be deducted as expenses of the business for tax purposes.
If the business is a partnership, the cost could be processed a s a business cost in the accounts but would be "Added Back" as a disallowable cost in the tax computation.
If the business is a limited company, then if the cost was paid for by the company, it could
a) be posted directly to the directors' current account in the balance sheet (thereby being not allocated to the business profit and loss account in the first place). If it was posted there, provided the directors' loan accounts were in credit, there would be no tax implications for the director(s).
b) allocate the cost to the profit and loss account where the cost WOULD be an allowable cost for calculating the company's Cortporation Tax liability.
However, the medical expense would need to be declared on the respective directors' P11d Benefit in Kind return and the director would pay the necessary PAYE on the benefit.
Medical costs of partners/directors are invariabley looked on by the Revenue as personal costs and therefore cannot be deducted as expenses of the business for tax purposes.
If the business is a partnership, the cost could be processed a s a business cost in the accounts but would be "Added Back" as a disallowable cost in the tax computation.
If the business is a limited company, then if the cost was paid for by the company, it could
a) be posted directly to the directors' current account in the balance sheet (thereby being not allocated to the business profit and loss account in the first place). If it was posted there, provided the directors' loan accounts were in credit, there would be no tax implications for the director(s).
b) allocate the cost to the profit and loss account where the cost WOULD be an allowable cost for calculating the company's Cortporation Tax liability.
However, the medical expense would need to be declared on the respective directors' P11d Benefit in Kind return and the director would pay the necessary PAYE on the benefit.
Eric Mc said:
Are you a company or a partnership?
Medical costs of partners/directors are invariabley looked on by the Revenue as personal costs and therefore cannot be deducted as expenses of the business for tax purposes.
If the business is a partnership, the cost could be processed a s a business cost in the accounts but would be "Added Back" as a disallowable cost in the tax computation.
If the business is a limited company, then if the cost was paid for by the company, it could
a) be posted directly to the directors' current account in the balance sheet (thereby being not allocated to the business profit and loss account in the first place). If it was posted there, provided the directors' loan accounts were in credit, there would be no tax implications for the director(s).
b) allocate the cost to the profit and loss account where the cost WOULD be an allowable cost for calculating the company's Cortporation Tax liability.
However, the medical expense would need to be declared on the respective directors' P11d Benefit in Kind return and the director would pay the necessary PAYE on the benefit.
Medical costs of partners/directors are invariabley looked on by the Revenue as personal costs and therefore cannot be deducted as expenses of the business for tax purposes.
If the business is a partnership, the cost could be processed a s a business cost in the accounts but would be "Added Back" as a disallowable cost in the tax computation.
If the business is a limited company, then if the cost was paid for by the company, it could
a) be posted directly to the directors' current account in the balance sheet (thereby being not allocated to the business profit and loss account in the first place). If it was posted there, provided the directors' loan accounts were in credit, there would be no tax implications for the director(s).
b) allocate the cost to the profit and loss account where the cost WOULD be an allowable cost for calculating the company's Cortporation Tax liability.
However, the medical expense would need to be declared on the respective directors' P11d Benefit in Kind return and the director would pay the necessary PAYE on the benefit.
Director
Bizarre rules when directors are not trusted and can't get any perks without paying the BiK , but if I went to a public sector organisation the other day and one group trainess was late because she had been for her free chinese head massage. The offer free massage and aromotherapy before and ater work and no BiK. I bet if I tried that they would eat me alive.
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