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Posted Tue, 15 Aug 2023 10:21:01 GMT by Martin Mich
Dear Sir, Dear Madam, Can a UK company be used to payment for nursery costs on behalf of it's sole owner? Under what circumstances could this be a legitimate business expense? I'm concerned that this lowers the company profit and thus the company tax, avoid making a distribution or lowers pay to the owner thus lowering individual income tax. So I would not want anyone to do this if it is not allowed. My son's mother is looking to do this - I'd like to give her advice so that she does not make a big mistake. Thanks and kind regards,

Name removed admin 
Posted Thu, 17 Aug 2023 10:30:15 GMT by HMRC Admin 20
Hi Martin Mich,

It may need to be reported as a taxable benefit, we would need more information on this, can you please call us on 0300 200 3200.

Thank you.

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