In calculating the deemed payment are relocation expenses paid by the limted company in respect of the directors expenses deductible ?
The company paid £8000 and so not over limit therefore no p11d/s198 entry required
above statement presumably asnwers my own question but worthwhile to check.
Greg Davis
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IR35
There is a trick to remembering what is allowed and what isn't under IR35. And that is to focus upon what IR35 does - which is to eliminate the company for tax purposes. The individual is hypothetically linked to the 'client' and they are set in the roles of 'employee' and 'employer' for the purposes of calculating the tax bill.
Therefore anything that is allowed in the tax code as an offset against the remuneration of an employee is allowed against the cost of IR35. Professional subscriptions for example.
Anything that is a 'non-taxable benefit' paid for by the company is not deductible unless specifically allowed - and I believe relocation expenses fall into this category. As does nursery vouchers and fully funded mobile phones.
The argument is that the client should be providing all these things.
NeilW