BIK on training

Wrenchie

I was hoping that someone could help me on a benefits query.

I have a client who along with his wife are the sole directors of a limited company. There are no employees and no active PAYE scheme. The client is a engineer consultant. Both directors are approaching retirement age and have been planning what will happen to the company when they do retire. Their son has piloting experience and they decided to direct the company towards pilot training and making kit aeroplanes in the future. The company has spent £17,000 this year on training for the son, and he has aquired the necessary flight and pilot licences etc.

The CCH helpline advised me that the training was allowable for corporation tax purposes, but would be a benefit to the son. But as he is not an employee, the benefit would fall to my client.

I am not sure how to treat this benefit. I cannot prepare a P11d as there is no PAYE scheme. The director is not an employee. He receives a dividend, and has a pension income (not related to this company). Does the benefit go on his self assessment tax return, and if so where abouts, and what amount is subject to income tax and NI?? :confused1: