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Best way to claim professional subscription

Should I claim on my SA tax return or expense to my company

I've paid for my professional subscription personally. I know I can claim this back on my self assessment tax return and save tax at 7.5% (i'm within the BRTB).

Or should I expense it to my company and let it save tax at 19%.

There's no P11D issues.

And yes I do have an accountant, but this time of year he never returns my call and my company year end is approaching.

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06th Dec 2018 12:53

WestBest wrote:

And yes I do have an accountant, but this time of year he never returns my call and my company year end is approaching.

Then probably best you find a new accountant.
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to Wanderer
06th Dec 2018 13:02

Wanderer wrote:

Then probably best you find a new accountant.

His accountant is so good he is really busy at this time of year so he's come onto AW to get some advice from the losers here ....

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06th Dec 2018 13:01

WestBest wrote:

And yes I do have an accountant, but this time of year he never returns my call and my company year end is approaching.

Looking at the nonsense questions you have been posting for years, it seems highly unlikely that you have an accountant.

In any event, asking for free advice in a passive aggressive manner is unlikely to get you the answer.

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to Accountant A
06th Dec 2018 15:07

Accountant A wrote:

In any event, asking for free advice in a passive aggressive manner is unlikely to get you the answer.

Asking with 70% of the information missing is likely to mean that any answer that is obtained is worth the amount paid for it.

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06th Dec 2018 13:14

Jeez - the numbers in your query speak for themselves, don't they ?

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06th Dec 2018 14:57

7.5% is the rate of tax on dividends within the BRB, which has nothing to do with expenses.

Your fundamental misconceptions about the tax system will prevent you from understanding the correct answer when it's presented to you.

That said, the correct answer is that the expense should be allocated to the entity for whom it was incurred and the tax treatment will follow.

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to Duggimon
06th Dec 2018 15:34

Well, I wouldn't be so sure.

Depending on the mix of income, 7½% may well be the marginal rate of relief on this subscription.

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to Duggimon
06th Dec 2018 15:40

Thanks for your response.

If I earn a basic salary of £8,424 and dividends of £25,000, my marginal rate is 7.5%.
If I deduct my professional subscriptions of £500 it reduces my salary to £7,924 hence less of the £25k is taxed at 7.5%

On the other hand, if the my company reimburses me this sum then there's no P11D issues (anymore) and there's no requirement for me to deduct it on my personal tax return.

Instead now it has become the deduction of the company (it's an allowable sub on HMRC's list), hence the company saves tax at 19%.

If I am missing something obvious I would appreciate a kind response? Thank you in advance.

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By Matrix
to WestBest
06th Dec 2018 16:16

Why would you put it on a P11D? There is no longer a requirement to include reimbursed expenses if they are allowable.

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to Matrix
06th Dec 2018 17:17

Without wanting to sound rude, I did say that there is "no P11D issues (anymore)".

By this I meant that the subscriptions is on HMRC's list 3 and it's connected to the trade of the company. So I presume it would be what HMRC call an "exemption". Hence no P11D issues and the company can just pay this back to me and claim it itself?
Thank you

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to WestBest
06th Dec 2018 17:05

Duplicate.

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to WestBest
06th Dec 2018 17:04

WestBest wrote:

If I am missing something obvious I would appreciate a kind response?

(Assumptions made,) I don't think what you say is hugely wayward but the position is possibly slightly more nuanced than you have set out. I also don't think it's year-end critical (if it is you should not have left it this late to think about it) - so I'd suggest talking it through with the accountant when s/he has a bit more time.

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06th Dec 2018 16:07

Isn't it 4.39%

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By Alex999
to RogueNation
06th Dec 2018 16:22

If you don't mind me asking, how did you arrive at 4.39%?

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to Alex999
06th Dec 2018 17:08

The 4.39% is the rate of tax on gross income.

Personally, assuming the subscription is connected to the trade of company; I'd recharge the company as the rate of tax is higher.

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By Alex999
to RogueNation
06th Dec 2018 17:57

I agree, recharging he company is the best way to do this.

However, I'm really sorry, but I still don't see how you get 4.39%.

I get 4.26% which is (100-19)/19 = 4.26
?

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to Alex999
07th Dec 2018 15:01

Hi,

Tax on £19,614 = £1,471.05
£1,471.05/£33,464 = 4.39%

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By SXGuy
07th Dec 2018 09:09

If your accountant is really busy this time of year he's either doing something wrong or he has alot of late clients. Either way I'd seek a new one.

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