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Business paying for a care worker

Can a business pay for a care worker for a relative if owner has to go away on business

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Pretty sure the answer is “no” but client who runs a small Limited Company but also cares for her elderly mother has asked if she has to go away on a business trip can the company pay for a care worker to look after her mother. She argues that she wouldn’t be able to do her job properly if she couldn’t do these business trips so feels the Company should pay to look after her mother when she is away. Can’t see how that could be an allowable expense but thought I should pose the question just in case there was a solution out there!

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By Tax Dragon
22nd Jun 2019 08:52

We've had the same question from another angle (children rather than parent? unincorporated rather than company?) before.

It's not a cost of doing business, it's one of being a daughter. Company can pay, but it'd likely be taxable on the daughter.

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By SXGuy
22nd Jun 2019 13:40

But the fact her mother needs care is irrelevant to the business. Regardless of whether she could or couldn't do her job. I'm suprised you have to ask this question.

What she can do is let the business pay it, and then be taxed on it.

Ask her how the cost of care is wholey and exclusively "related" to the business.

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Replying to SXGuy:
By Tax Dragon
22nd Jun 2019 20:07

SXGuy wrote:

I'm suprised you have to ask this question.

But, given our newfound spirit of mutual professional support, it's sad to see this kind of remark.

OP, good on you for not posting anonymously.

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By Waves
23rd Jun 2019 08:43

I agree with both respondents, in part. I think it’s highly commendable of Mrs Slater to not ask an utterly ridiculous question anonymously.

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Replying to Waves:
By Tax Dragon
23rd Jun 2019 10:16

Why ridiculous?

That's a genuine question. I've long since lost count of the number of times that respondents (as well as OPs) have misapplied the wholly and exclusively rule (as indeed SXGuy has done here).

But for interventions by the few (probably Vile in particular in recent times, and Portia in days of yore) the many would probably still think that costs such as that postulated in the OP were disallowable.

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