TAX TIP OF THE WEEK - Your daughter wants you to pay for her driving lessons. Would getting your company to pay the £1000 cost be more tax efficient than paying for it personally?
As a director of your own company you are free to put any personal expenses through the company, however, it will come at a cost of benefit in kind taxes for you and the company.
Therefore in most cases, it is best to first draw payments out as dividends and then pay for any personal items.
However there is a more tax-efficient option, Why not put your daughter to work in the company and during any breaks she gets from her education?
The company can then pay a salary through its payroll saving corporation tax and no personal tax.
For this arrangement to work you must retain some evidence that your daughter is working in the business and a commercial rate is being paid.
I hope this was helpful, for lots more tax tips and strategies get a copy of our 71 ways to save tax checklist https://bit.ly/2YQbhvr