Using your own limited family company to meet university costs of your son or daughter

News: December 2011

Using your own limited family company to meet university costs of your son or daughter

The scope is substantial, with care, and can result in both a corporation tax deduction and no income tax charge on you to cover the benefit. The ultimate tax-efficient arrangement! As you can imagine, the rules are strict to achieve this.

Your son or daughter must be properly established as employed by your company, but that does not have to be full-time. Various safeguards must be built into the arrangement so as to resist any attack from HMRC.

Not surprisingly there are limits to the tax exemption, and in particular it does not cover tuition fees. Rather it is meant to cover lodging, subsistence and travel up to a level of £15,480 in the academic year. We will be pleased to advise of what exactly can be done in your specific circumstances.