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Staff costs deductibility

Any restriction necessary?

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A thought occurred to me and I wondered what others think...
If clients employ staff and their duties include dealing with external accountants regarding directors' personal tax returns (for companies) or the proprietors (for unincorporated businesses), would you normally disallow part of their salary costs in the business tax comp, or just allow it all on the basis that it's such an insignificant part of their workload?




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16th Jun 2019 22:35

The latter.

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17th Jun 2019 08:13

Even if the work is significant, disallowing the salary isn't the route.

It's a benefit in kind.

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17th Jun 2019 08:26

As if you can be ar5ed?!

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to atleastisoundknowledgable...
17th Jun 2019 08:36

Well - I thought that but I didn't say so because it might be a really big return with dozens of rental properties, foreign income, CGT disposals and other complications.

Hard to say whether I could be ar5ed without knowing the quantum.

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17th Jun 2019 08:43

I've seen it P11D'd.

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17th Jun 2019 10:21

For an unincorporated business, I might consider a disallowance if the time spent that didn't relate to business matters was significant. The only context I've seen it in though, is large law firms, where it is the business aspect that is the main "complication".

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17th Jun 2019 10:39

Food for thought- I am employed by a partnership and whilst it does recharge part of my cost to other legal entities controlled by the two owners , I do also knock out their personal tax returns (mainly figures ex the business entities) and advise them on other matters, some as inconsequential as the form of finance for their next personal car , chatting to them about their latent IHT issues (more significant) or even spending an hour helping to put a classic car on a transporter.(certainly not business)

I wonder what they did re my wage cost during my apprenticeship? Fair bit of my time was popping to the shops for cigarettes for the senior partner or carrying stuff down to his car ,most of which had naught to do with the office.

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