Paying private school fees through limited company and VAT
Discussion
Surprised that this one hasn't been asked already, but I've searched to no avail so here goes.
I understand that it's allowed for a company to pay an employee (or director's) child's private school fees. These are not tax deductible and personal tax is still due. so there isn't an advantage for the employee to do this.
However, if (when) Labour enact their policy of forcing indpendent schools to charge VAT, a VAT registered company can claim back this input tax. The net cost to the business is then the fees without VAT. Is that the cost that the employee pays?
I understand that it's allowed for a company to pay an employee (or director's) child's private school fees. These are not tax deductible and personal tax is still due. so there isn't an advantage for the employee to do this.
However, if (when) Labour enact their policy of forcing indpendent schools to charge VAT, a VAT registered company can claim back this input tax. The net cost to the business is then the fees without VAT. Is that the cost that the employee pays?
Gassing Station | Business | Top of Page | What's New | My Stuff