I have a new LTD co client, 2 Directors and shareholders, none of whom take a salary. The business offers martial art classes to the general public and the business is only breaking even. The directors, who are also the instructors spent a lot of additional money on training costs for themselves this year.
I have 3 questions:
1. What are the rules regarding training costs being tax deductible?
2. Since they're not actual employees, do these rules still apply?
3. Is there a BIK element?
In my opinion they should operate as a CIC rather than an LTD but they have expressed the fact that if the company were to make money they would like to withdraw the profits ad dividends, though agree that potential for significant profits are minimal based on current number of classes.
Each director has their own full time job on which they make their living.
Thanks for your help.