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Hi Alan, I have a query regarding medical expenses, If a director sustains an injury on the business premises can they claim an on-going physiotherapy & medical expense as an expense to the profit and Loss account or should this be treated as a directors expense and debited to the directors account. These cost are to be foreseen for the next 2 to 3 years & if posted to p&l should they be added back to get the adjust profit? Thanks

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Posted by (Questions: 10, Answers: 0)
Asked on 19 November 2013 9:43 am
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It all comes down to whether the expenses is considered to be “wholly and exclusively” incurred for the purposes of the company’s trade. If the company is liable for the expense, for example because it does not have insurance, and has been sued by the director, then it is a company expense.
If the company is not liable, but merely opts to pay the expense, the payment constitutes remuneration / BIK, and is taxed accordingly in the hands of the director.

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Answered on 22 November 2013 11:23 am