Bit of fun…
Being a one person ltd company:
- I can have a Christmas party for all employees (me);
- invite my wife or partner (but not both!)
- spend and get tax relief on it.
- there is no taxable benefit in kind as I stayed with the rules
- If I had tried to spend out any other way then I could easily be paying a marginal FBT.
- So I can take the partner out for a nice meal knowing that the tax man is effectively funding our meal (and they don’t need to know that either).
- I feel good, partner feels good. Success.
