I have a client who is s shareholder of a close company (not employee) and wishes to do a PHD with a nearby university. The spipend on offer to her is £15000, but the company she is a participator of will pay £7500 to the Uni and then it will pay her £15K in 4 instalments over 12 months. The company cannot afford the cash outflow and so she is considering injecting it as a loan.
I understand that stipends are not normally taxed, but I wondered what her and the company's situation would be in this situation. She accepts that she may need to just gift the company the money to pass on the the Uni. I believe there is already some associated between the company and Uni (loan of test equipment to the Uni)
If she loans the money (or not) will the company get a deduction (for CT) for its payment to the Univerity?
If loaned to the company, could she have a tax charge as in receipt indirectly of monies from the company?
Any thoughts much appreciated