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Visa fees paid by client's company - BIK?

Visa fees paid by client's company - BIK?

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I have a contracting client. They are non-EU but commonwealth nationals, who has been living in this country for some time, and set a contracting company last year. I am looking at their year end company accounts and self assessment now.

The company paid for the visa from The Home Office of c.£2.5k. Given that this is not related to travel on behalf of the business, but really just a cost that the individual would incur from their post tax income (normally), this looks to me like a disallowable cost, however I have sneaking suspicion that a case could be made that it is wholey and exclusively for the benefit of trade (the individual works exclusively for the company now, and is based in the UK). But the other side of me thinks the individual is getting a benefit and therefore its potentially a BIK (or more likely - a transfer to the director's loan account).

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By ireallyshouldknowthisbut
11th Sep 2019 17:44

I imagine its nothing to do with travel, but the extortionate costs of trying not to get kicked out of the UK by our current government.

The approximate cost of a "leave to remain" is about £2.5k if you do it yourself.

And then another £2.5k when they reject it, and £5k more for advisory fees if my friends experience is anything to go by.

Its basically a "you can only stay here if you are rich enough" tax.

Id say it was a BIK myself given the duality of purpose.

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By Bobbo
12th Sep 2019 14:02

See this from a Freedom of Information request.

Obviously any such guidance from HMRC should be considered against actual relevant legislation.

However it suggests that where your client has been in the UK for several years and this payment is so that they may remain then it would be a BIK.

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