For the most part, company expenses need to be related to the trading activity to be allowable for corporation tax relief and if they affect an employee (including directors), there can be a Benefit-In-Kind (BIK) to worry about with tax.

There are many BIK exemptions, too many to go into here but here is a useful one.

A company can pay for pension financial planning advice up to £500 per person.

• The company will benefit from corporation tax relief.
• The benefit is tax free for the employee, thus no BIK to account for.
• If you spend over £500, there is a BIK.

TIP: if you need to spend more than £500 on pension financial advice, spend the first £500 from the company and have the invoice made out to the company. After that pay the invoices personally; it wont matter who it is addressed to at that point.

CONDITIONS: The service must be made available to all employees of the company.

• If you have staff, you either make them aware of the offer, or you pay the cost personally, not from the company.
• If you have no staff, then fill your boots, director only companies are all the employees.

 Call if you have questions.