Tax Allowable Expenses

Tax Allowable Expenses

Didn't find your answer?

Dear Members ,

I am preparing accounts of a ltd company, and came to know these expenses.
i need to confirm the treatment .

1- Present of Watch £125 to Departing(Leaving Employemt) Employee is this
tax allowable in CT ?

2- Expenses for SPECS (work distance eye glasses) £ 415 for the Director and secretary £ 200. would this be allowable too ?

I would highly appreciate your commments .
Rehan Arain

Replies (1)

Please login or register to join the discussion.

avatar
By User deleted
28th Jun 2007 16:40

Watch yes, Specs No
1. There are rules for awards etc to the departing employees and if my memory serves me well, such gifts are allowable as long as rules are laid down for their availability eg any employee who leaves after 10 yrs of work would get a watch etc
Obviously the employee would have a P11d benifit for it.

2. I dont think this expense is allowable as it fails the 'wholly, exclusively and necessarily' test.

Thanks (0)