I have an associate dentist client who would like to pay for the travel to work expenses of her dental nurse. My client is self employed but is not, of course, the employer of the nurse, the employer is the principal dentist. The nurse is frequently late for work as she uses London buses, and the question my client asks is whether she can pay the, more expensive, train fare for the nurse. The nurse will then be on time.
Will this be tax deductible for my client? I need to mention to my client the consequences for the nurse though, who presumably will be liable for tax on the travel costs as they are a benefit derived by reason of her employment. But not paid through PAYE.
The nurse is a basic rate tax payer but my client is a higher rate tax payer so some gain here I suppose. Any thoughts
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Client just agrees that nurse will invoice him more, the extra amount to cover the cost of the train fares. If nurse feels extra tax is too much client can just keep hiking up how much he will agree for her to charge.
I would have thought the best approach would be to censure the employee for being repeatedly late and suggest taking an earlier bus but maybe I'm old fashioned like that and we ought not to expect everyone to make their own arrangements for getting to work on time!
Hahaha. Great reply.
Unfortunately these basic tenets of good breeding and pride in work attendance by mist ranks went out the windiw slowly but surely, eroded as they were by the I WANT EVERYTHING AND I WANT JT NIW society engendered by a combination of feminism and the sacred cow of work/life balance which means married women ( and now married men ) spend more time at home on either paternity/maternity / elder or disabled relative leave than they do at work!!
For Gods sake just pay her in cash every month and forget the nitpicking tax implications.
Until they abolish money that is then you ll have to subsidise her in free check ups , fillings, bridges , crowns .......
As the dental nurse is not legally contracted to your self employed dentist, I can't see how the payment for travel to employed work when employed by a third party can ever by allowable. Travel costs to and from one place of work isn't allowed. The only solution would be if the employer of the nurse increases her wage to cover the additional travel costs with your client invoicing less so the employer isn't out of pocket. But what makes you think the dental nurse will use this money to get the train? If the employer isn't censuring the nurse for her continual tardiness now why should she change?
Both girls eh? How very modern! ;) I had noticed from the OP.
You seem to be the one that assumed that for the parties to be [***] the associate dentist had to be male and the dental nurse had to be female.
I cannot see how what is essentially additional remuneration being paid to the dental nurse can be expenditure incurred wholly and exclusively for the associate dentist's business.
The dental practice ought to provide the associate dentist with a nurse who turns up on time.
OK situation is
Assoc Dentist (AD) S/E contracted to Principal Dentist (PD)
Dental Nurse (DN) - PAYE employed by PD
There appears to be no contractual relationsip directly between AD and DN. Why can AD not pay DN for anything she likes? AD has in fact 2 jobs one PAYE, one S/E
DN has addition income which should go on SATR.
The reason for the income is irrelevant in this scenario. (IMHO) and i look forward to being corrected.
That being said - just give DN a written warning about timekeeping and monitor for improvement. That's the correct course of action.
There appears to be no contractual relationsip directly between AD and DN. Why can AD not pay DN for anything she likes? AD has in fact 2 jobs one PAYE, one S/E
As you say, AD can give DN whatever money they like without BIK implications, the other issue however, is whether the money they give DN would be tax deductible. It is not, for the same reason, DN is not an employee of theirs and the cost is not necessary for their business.
As you say, AD can give DN whatever money they like without BIK implications, the other issue however, is whether the money they give DN would be tax deductible. It is not, for the same reason, DN is not an employee of theirs and the cost is not necessary for their business.
Agreed - but if AD pays DN a sum for each day she attends on time, not for actually getting there, then it should be OK as a WEN expense - incurred in the nature of the business as the AD cannot commence work with a DN (argument point accepted).
Of course - belts and braces - i always like necessary.
Also need to demonstate no payment for not attending on time.
We all have made the assumption that all are at the same building (Me too) If not then payment of the taxis fare may be an allowable expense.
What an odd thing to say. Dental nurse or dentist are not two professions that you would expect to find someone working remotely, I think it's safe to assume they work in the same place.