Professional surveyor wants to take someone into the business but the employee needs qualifications and needs University Degree.
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See...
... Silva v Charnock, subject to WhichTyler's pertinent point, which would block deduction of the expenditure from the business profits.
Related
so potentially not wholly & exclusively: http://www.hmrc.gov.uk/manuals/bimmanual/BIM47080.htm
Employer funded university education
See Statement of Practice SP4/86 www.hmrc.gov.uk/legislation/sp4-86-note.html
Also EIM 06237 for the full text.
The statement of practice is an administrative easement and no further questions are asked by HRMS if you keep to within the limit.
The employee must be enrolled for at least 1 academic year
The employer can pay up to £15,480 for the academic year,including lodgings,subsistence & travel. No income tax or NI is payable on the amount. However, amounts paid for holiday or vacation time is taxable.
To date no problem either with connected persons, so long as employed by the firm with a proper employment contract before applying or going on to full time education.
See the book School & University Fees Simplified 2013/14
Education funding
re Portia Levin
EIM 30001 refers to scholarships, which is not relevant as the employer is not giving a scholarship.
The other two references refer to non training related sponsorship/ payments to minor children and do not seem to be relevant.
The SP quoted lays down specific rules to be followed for an employee (which is why I mention having an employee contract). Over the years the amount that an employer can pay an employee whilst studying in full time education has risen to £15,480 with no tax nor NI payable and the payment(s) allowable as a business expense.
Interestingly there is no mention that the course to be studied be relevant to the business, nor that family members who are employees are excluded.
The question was whether university costs are an allowable expenditure against business profits. SP4/86 lays down what is allowable within a certain level of expenditure (£15,480).
Mum and Dad
My case involves mum and dad owning a Ltd Co 50/50.
Son is an employee and part qualified for the "main task" but has only worked on reception so far. Son now off to Uni for 4 years, would come back as employee for the main task. (although I wouldn't rule out his getting wed and setting up 200 miles away)
OK, seems to me it's allowable for CT, but seriously at risk of BIK on mum or dad.
Hmm, actually dad runs the business and mum has an independent employment which covers her PA. (mum ok - not a director or employee but is co sec)
So, to avoid tax on the potential BIK, dad takes no salary and only dividend.
Someone suggested to me to ask for a P11D dispensation as a litmus test.