I have first time client who works in the Public Sector (NHS) through his company LTD. Everything is pretty clear (IR35 applied to it, taxes and NI has deducted at source and there are no 5% expenses), except for three aspects:
- 1. The client paid some time for personal things directly from the bank account of the company. How to record these expenses in accounting software in order to avoid BIK (and anything that can be taxed - because all the taxes has been paid at source already)?
- 2. Well, no allowable expenses is a clear term, but can it claim such expenses as a private pension and tools for work or not allowed at all? - And if not, how should these expenses be mentioned - recorded in the accounting software?
- 3. Is the client obliged to run payroll, if he has no other income than this from Public Sector?
All the "problems" are related to how he can withdraw - pay money from the company's bank account. And this could not be a problem if it was a standard (out of IR35) company. Any tax and NI has been deducted at source, and is very important to prepare company's accounts in manner that the client will not pay it twice.
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Thank you all in advance and very much appreciate any practical help - guide.
