Tax Planning

Additional benefits of using a Limited Company

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Louise Misiewicz

Tax Consultant

16th February 2018

Article relevant to the tax year 2017/18

Are you looking to maximise the benefits of your Limited Company?

I have already written an article to explain the most tax-efficient way of taking salary and dividends out of a Limited Company. Part of this article I also recommended how to invest into your retirement into a pension, which is a cost to the company. This ultimately means that you pay less corporation tax.

I researched further and wrote another article here to show how a Limited Company could contribute towards the care of your children – whether that be registered OFSTED child minders, nursery, or private school. There are some tax changes coming very soon so please act quickly if it is not already too late.

I carried on with my extensive research with another article here to show how you could have life insurance policies, which would pay out on your death, and the premiums could repaid out of a Limited Company. This is sometimes referred to as Key Persons Insurance.

My team of property tax experts are on hand to best advise our clients on how to maximise the amount of money that they can take out of a Limited Company.

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Download our tax-efficient property investment guide for 2018 here

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In this article, I wanted to share with you some other benefits that your Limited Company can provide, which has been taken directly from HMRC’s website.

Medical treatments that your Limited Company can pay for and is not a benefit in kind

  • Annual health screening (private medical checks – Well persons check)
  • Eye screen tests if required to be taken for health & safety purposes such as computers
  • Glasses or contact lenses if required to use computers or other business equipment
  • Overseas medical costs if working abroad
  • £500 towards medical treatment if an employee has been unable to work for more than 28 days
  • Welfare and counselling costs incurred, as shown in the HMRC manual

Any other treatments are taxable and must be reported on a P11D and the company will also pay 13.8% employers national insurance.

Staff entertainment and celebration costs

As shown in the HMRC manual, there are additional perks that may be provided by the Limited Company for the benefit of their employees, which are not a taxable benefit. For example, £150 per head for Annual parties or similar functions.

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