During a rare trip to the pub the other night the conversation got round to the cost of university fees, as it frequently does for parents with children of a certain age.
One of our group, a self employed building surveyor, proudly declared that his only son was going to follow in his old dads footsteps and become a surveyor. He then went on to say that he would employ his son and his firm would then pay his university tuition fees which would be tax deductible. This announcement was met with a stunned silence from the rest of the group. Looking round I could see that all the dads were mulling the implications of this over in their minds. Eventually the more observant in the group realised that there was an “expert” in their midst and slowly all the eyes and faces turned to me in anticipation of my informed words of wisdom on this matter.
As an accountant this is the moment I dread, almost as much as when a new acquaintance asks what I do for a living. So I gave my usual non-committal answer about every situation is different and you would need to sit down with your accountant to go through all the details blaah, balaah blah. Luckily I spotted that the pub were now stocking a new variety of pork scratchings and managed to divert everyone’s attention.
Anyway; the above mentioned surveyor phoned me this morning to express an interest in transferring his business to me (I have recently set up my own practice). Obviously this is good news but I know the issue about his son's university fees will come up.
I would be grateful for comments from others please on the viability and possible implications of his proposal. I know him very well. He is trustworthy and I have no doubt that his son will genuinely be employed by him i.e. have to work for a living. He is a Ltd company with just himself and 1 employee.