Private school fees

sjkr

Hello,

I know a businessman who sends his children to a fee-paying independent school. He claims that he will be able to claim some of the fees as a tax allowable expense through his business. Is this the case? I thought that he would not be able to as they are not a business expense!

JP

bumblebee

They are classes as part of his drawings, and therefore not applicable for tax purposes.

Monsoon

I can't see how they are a tax deductible expense.

If he runs a Ltd Co, then they could be fully deductible as a benefit in kind provided to him via his company - but surely the tax charge and the Employers NI would make this a more expensive way to run things even after the corporation tax saving?

A-Vic

Agreed for the Ltd company but is this provided for all the employees of the company if not it is a disallowble expense

sjkr

That's as I thought, thank you all!

Monsoon

A-Vic wrote: »

Agreed for the Ltd company but is this provided for all the employees of the company if not it is a disallowble expense

A-Vic, I didn't think it had to be made available to all employees? I know, say, a canteen has to for it to be allowable, but things like medical insurance, company car, can be available to select employees I thought, and wouldn't school fees come under this?

A-Vic

Monsoon wrote: »

A-Vic, I didn't think it had to be made available to all employees? I know, say, a canteen has to for it to be allowable, but things like medical insurance, company car, can be available to select employees I thought, and wouldn't school fees come under this?

I was thinking child care scheme. of course its a disallowble expense ignore me

Rachel

There is something to do with pensions and school fees but I am not 100%

Rachel

Just checked and it tax planning more that tax deductible

Monsoon

Rachel wrote: »

Just checked and it tax planning more that tax deductible

Would you mind sharing a link if you have one?

Rachel

This is one article but it is 2007 I am certain I read something recently on similar lines,
http://www.timesonline.co.uk/tol/money/consumer_affairs/article2398251.ece

deanshepherd

Many independent schools make use of the childcare vouchers scheme for their fees.

They cannot be used for the education but most schools have afterschool clubs which come under the remit of childcare. Therefore, the fees are split and can be paid by the parents employer/business.