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TonyTax
TonyTax, Tax Consultant
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I have my own limited company and I have tried to claim

Resolved Question:

Hi I have my own limited company and I have tried to claim BUPA membership against the companies taxable income. My wife is the company secretary who is also covered.
My accountant thinks the company cannot offset this expense against the company's tax bill
A friend in a similar situation says his accountant has put it forward as a legitimate expense. My accountant disagrees
In the last year I have cause to use the BUPA memebership and it certainly assisted in my speedier return to work.
Your assistance will be appreciated, if possibly quoting what reference I can use to put this forward as an expense.
Thanks
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Was the BUPA membership taken out by you in your name with you paying the premiums or by the company in its name with the company paying the premiums?
Customer: replied 1 year ago.

BUPA membership is in my and my wife's names but paid for by the company. sorry about the delay

Happy New Year

Expert:  TonyTax replied 1 year ago.
Thanks.

If your company pays a personal bill of an employee or a director, then it can claim a deduction for tha bill for corporation tax purposes but there will be income tax and NIC implications for you on the benefit in kind and Class 1A NIC implications for the company. Take a look here and here for more information.

You can avoid the income tax and NIC by paying the money back through a book entry in the directors loan account but the company won't then get a deduction for the premiums.

I hope this helps but let me know if you have any further questions.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15882
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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