Can a client be taxed for being high powered?

Can a client be taxed for being high powered?

Didn't find your answer?

Client is a company which undertakes electrical works.  They wish to expand by fitting photovoltaic cells to the roofs of houses belonging to domestic customers.  The customer will be able to “sell” surplus energy back to the grid.

Client first needs to be accredited and wants to fit a system to his own house to both achieve accreditation and have a working example to show potential customers.

It will cost the company £7,000 to install a system, a member of the public would be charged about £10,000.  It is estimated that a customer will see a positive return after 10 years.

Will this £7,000 be allowed in the Company’s accounts as a promotional expense?

Will it, however, also give rise to a benefit on the director whose house it is being fitted to?

If so, will the cash equivalent be the actual cost or the market value?

Many thanks to anyone leaving their thoughts.

Replies (1)

Please login or register to join the discussion.

avatar
By lordburnside
23rd Sep 2010 16:12

Benefit

I think the benefit is £10000 to the Director. Any profit made in the future beongs to the Director.

To avoid the benefit get someone else to have it done to their house or alternatively don't tell anybody!

Thanks (0)