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can you claim medical expenses as a legitimate expense?

can you claim medical expenses as a legitimate...

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Hi 

A client has physio on his hand due to carpal tunnel syndrome from using the computer a lot. He needs the treatment to continue his business of translating documents.

Is this treatment an allowable expense? He is a director of the company and sole shareholder.

Personally I think its a long shot but no harm in asking.

Thanks

Cameron

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By Phil Rees
22nd Oct 2012 13:34

No

It is not an expense of the business but it is to put him in a position to trade. Therefore not allowable by statute.

 

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Nigel Harris
By Nigel Harris
22nd Oct 2012 14:02

Worth a go

No so sure, Phil. It sounds like an industrial injury which arose in the carrying out of his duties for his employer. There's no obvious duality as there was in Prince v Mapp [1969] 46TC169 so I can't see why the company shouldn't pay for the treatment as a business expense, with no benefit in kind to the director.

http://www.hmrc.gov.uk/manuals/eimanual/EIM32870.htm offers a glimmer of hope I think, it's worth exploring.

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By Steve Kesby
22nd Oct 2012 14:20

It's an allowable business expense

To the extent that it's not otherwise attributable to a business purpose, it satisfies the wholly and exclusively test for a corporate as being remuneration of the director (assuming that the overall package isn't excessive.

I have to say that I don't wholly agree with EIM32870.  Whilst Prince v Mapp and the FTT case of Parsons will get it past wholly and exclusively, there's then necessity and in the performance of the duties to contend with in order to claim any benefit as an expense under S.365 ITEPA 2003.

Notwithstanding a business purpose, there is still a benefit to the director (see Rendell v Went in EIM21003).  A proper apportionment of the expenditure should be made (see Westcott v Bryan in EIM21201 and Xi Software).

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