Tax relief for work permit costs?

Virgil_2

I've just relocated to the UK and have formed my own limited company to trade as an IT consultant.

I have had to pay solicitors fees and Home Office fees to get a UK work permit which I obviously need to be able to work through my own limited company.

My accountant (one of the large IT specialist firms) says that I can't claim the costs through my company - they say that it is a personal expense "to put me in the position to work" and cannot be claimed back from my company like other tax-free expenses.

I dispute this as I have to have a work permit to work in the UK, so why can't my employer (i.e. my own limited company) reimburse me and claim it as a legitimate business expense? I've been seconded abroad for previous employers and they've always repaid this kind of cost without argument, so why is it any different when I've started my own UK company?

Any help would be greatly appreciated.

Elaine_Wilson

Unfortunately I have to agree with them. Your company could pay the costs but I am sure they would have to be put on the P11D form (Benefits in kind).

You could then try to claim relief for them but they would have to pass the wholly, exclusively and necessarily test. The necessary part has to relate to the position not the employee. So whilst you might need the permit to carry out the duties of the job not everyone would have to go this expense.

Cook_County

The accountant is correct. It may be deductible in your home country for tax purposes however.

Pennywise

Have to agree with the others - definitely not allowable I'm afraid.