silvnic

Hello, I am also interested in this topic. I've read through what you advised and also read the CTM15150 - Distributions: general: tax consequence. I have a question relating to the point that says "From 1 July 2009 - CTA09/S931A charges distributions from UK and non-UK resident companies to corporation tax, but then exempts these from charge in most cases." I understand that if my company receives a dividend from a UK or non-UK resident company the dividend received is exempt from corporation tax (in most cases). Is this correct? Does the same rule apply if the dividend is received from a distribution paying exchange-traded fund (ETF). The complexity here is that the ETF is made up of several companies or bonds within and outside the UK - I would assume that under CTA09/S931A it does not matter if the distribution is received by an ETF or not. Can you please correct me if I am wrong? Thank you.

Hello, Thank you for your response but I am not seeking accountancy advice from you. I am asking how would HMRC treat this if I was to proceed to set up a company sponsored Health Cash Plan for the 2 directors. My accountant would not be able to tell me if HMRC would accept this as a business allowable expense or whether a cash plan is seen by HMRC as a non-taxable benefit for the individuals. That is why I am seeking HMRC guidance on this in order to share this with my accountant before I proceed. Thank you

Hello, I have a small LTD (closed company) with just myself and my partner as the two Directors. We do not pay ourselves a salary and therefore we do not have an employee payroll. I would like to set up a company sponsored Health Cash Plan for the 2 directors from providers such as Health shield or Sovereign Health where the recipient gets refunded part of the money spent for treatments such as dental, optical, physio etc. For clarity this is not a health insurance plan and the company will not be paying an insurance premium. My questions is as follows: 1) Due to the small number - 2 directors - (most providers ask for 5/10+ employees for a corporate plan) we can only get personal health cash plans - could these be paid by direct debit from the LTD bank account? 2) If yes to above, then I understand that this would be considered as a business allowable expense for corporation tax purposes. Please correct if I am wrong. 3) From reading the various documentation I also understand that there is a distinction between a health cash plan versus an insurance plans (i.e. premium paid by LTD) in terms of how it is treated by HMRC for taxable benefits (and P11D forms). A cash plan would not classify as a taxable benefit for the individuals. On the contrary a health insurance premium paid by the company would be classified as a taxable benefit. Please correct if I am wrong. Thank you very much in advance and looking forward to your replies to my questions.

Hello, I have read BIM46000 and also BIM46035 and given your earlier response by HMRC Admin 8 on 12/12/023 I understand that: The employer (LTD company) can offer a remuneration package - that was wholly and exclusively for the purposes of the employer’s trade - to the directors in the form of pensions contributions to a registered pension scheme (i.e. a Vanguard SIPP) then this remuneration package is an allowable expense for corporation tax purposes. In addition, according to BIM47105, this remuneration would need to be at a reasonable level of the reward for the value of the work undertaken by that individual. Can you please confirm that the above is correct and if not please clarify the correction. Thank you.

Hello, I have the same question. Can the LTD company contribute some of its income to a private pension held by a director? In my case, there are no employees, only 2 directors (close company) and the director's pension is an existing private pension that was set up prior to the directors appointment. Is this allowed and if yes, will this be considered as allowable expense for corporation tax purposes? Thank you.