payments booked to DLA - can they avoid BIK?

Client set up medical benefit on company account

Didn't find your answer?

I think I know the answer is no, but just asking to make sure...

Client went ahead and set up a Medical Insurance deal for H&W, paid for out of the company.  So all in company name etc.  They didn't appreciate the BIK implications and marginal (if any) tax savings.

If I book these costs direct to DLA will it avoid triggering a BIK? - don't really want to go down the BIK route as there is no PAYE scheme in place, so bit of an admin pain that could be avoided if I can go down the DLA route.  Or is the only alternative to cease the scheme and then set it up using personal funds?  NB I am assuming we need to set up a PAYE scheme in order to deal with the P11ds.

If anyone has any thoughts, it would be much appreciated.

 

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By ireallyshouldknowthisbut
28th Jun 2018 18:11

Why no?
See the answer to the previous question about the car. Not sure if that is also you as its anon.
Clue: the tax on this is different to cars as the BIK is the cost, not a different value.

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Replying to ireallyshouldknowthisbut:
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By lja20
28th Jun 2018 18:43

I think I have read something previously that implied, booking costs to the DLA didn't extinguish the tax implications - but that said, I was probably thinking about it in the context of a car.

Thanks for your help
ps I didn't post the anon car post. Although cars are next on my clients list of things to do (but he is actually talking to me about that before he does it!)

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