employee morale-boosting and team building

[Anatol]

My employees have mentioned a few times that they're mildly jealous of the track days I go on.

So I reckon a track day as a reward for good work/morale boost/team build would go down quite well.

Where is the line drawn between what's a legitimate expense and a taxable perk? I genuinely believe anything that makes you a more skilled controller of cars and more laid-back on the road because you get the red-blooded stuff out of your system on circuit is good for any business that you drive for - so is there a legitimate training element here?

Does it change at all if these reward days are given by the directors to themselves?

Any knowledgeable input gratefully received.

Tol

[TSS]

Not too sure about trackdays. Our accountant advised that he didn’t see any problem with buying a RideDrive course on the company because technically it is driver training.

[flyingjase]

I do quite a lot of incentives for my staff and unfortunately they are all treated as a benefit in kind for the staff. Either you as the company pay their tax, or they have to pay their tax.

[Mattt]

Do they have to drive in the course of their work?

Maybe speak with Carlimits about running an Airfield day specially for you (and maybe selected customers) down at North Wield.

Shortly before I arrived, my company did a day at Silverstone for selected staff & clients - I'm going to push for a corporate Palmersport day next

[Anatol]

Absolutely they do - several hours a day.

I've had a read of the £150per head rule on Christmas (etc) events, but clearly a track day is going to cost more than that. I think if I can get something formally invoiced as driver training I'd be happy to treat it as a business expense, but otherwise I guess someone's going to be paying the tax...

Tol

[Mattt]

I'm sure CarLimits wouldn't have a problem with that, they advertise themselves as 'high performance driver training' - and it would cost under £150/head I would hazard to guess.

[Anatol]

Good thought. I think for 4 peeps the day is £190 a head according to their website, but maybe I can do some haggling.

Thanks for the suggestion.

Tol

[Brown and Boris]

Anatol said:

Absolutely they do - several hours a day.

I've had a read of the £150per head rule on Christmas (etc) events, but clearly a track day is going to cost more than that. I think if I can get something formally invoiced as driver training I'd be happy to treat it as a business expense, but otherwise I guess someone's going to be paying the tax...

Tol

Split it across 2 finacial years? Get them to invoice for half either side? = £300 a head.