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@flora01 The company pay corporation tax on profits. Profits are revenue minus allowable expenses. Once corporation tax is paid, you can pay yourself a dividend from any remaining profit which you would pay income tax on. But at the dividend rates. So if basic rate, the company pays 19% then...

@warlord4747 You can pay her whatever you want. But for tax purposes you can only deduct costs wholly and exclusively incurred for business purposes. When there is a personal relationship, hmrc will normally allow what you'd pay someone you didn't have a personal relationship with but any excess...

@flora01 Well yes you'd only be liable to pay income tax on money you actually take because until that point it wouldn't be your money - it will be the company's. They would need to pay corporation tax on it before it could be paid as a dividend to you. What threshold do you think applies to...

@daviddass1 Well the not given with regularity or as reward are part of the rules for trivial benefits. But linked to a life event is general advice given by accountants (not something I came up with) as it is easy to demonstrate they aren't being given for reward/performance if they're given...

@belledandy Is your partner performing a contract of service (aka employment duties) or are they just a shareholder? No you can't provide them all on one day, else what you're providing isn't £50. The general advice is the trivial benefit should be linked to a life event (not given with any...

@tibily Q2) by make good I mean pay your employer the value of the benefit. Say the benefit is valued at £2k, if you pay 1k towards it, that 1k would be deducted from your take home pay (after tax is already deducted) and you'd be taxed on the remaining 1k. Unless it's salary sacrifice. If...

@tibily Q1) it's essentially 150.93 multiplied by the highest rate of tax you pay. So if 40%, about £60 a month in tax. Q2) if you "make good" the amount of the benefit in full, there is no benefit so no further tax charge. But you would still be taxable on the income used to "make good"...

@yanekcastell It could be hmrc think your circumstances will be the same again this year (was your total income on the return over 100k?) but your accountant is definitely wrong both in the reduction being to collect the £4998 and also in their explanation of K code. Your code gives your tax...