I believe investor portals are in the USA, so I just wondered if that was the case in the UK?
If it relates to your work ie your in finance it will be if your in landscape gardening it won't be.
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Shamusj
17 comments
brballs
Depends on your style though. I like to water the flowers and pull the weeds. Would HMRC accept that reasoning? ;)
William K
If you're self-employed, and you run your business as a company, and your business is unrelated to finance, you may be able to classify your Stockopedia subscription as a benefit in kind. As a benefit in kind, it will be subject to Corporation Tax, currently at 19% but not to dividend tax. So for those who are paying tax at the higher rate, 40% or 45%, there might be some benefit in paying for the subscription through your company rather than out of taxed income. It would be wise to check with your accountant first.
The tax laws on benefits in kind are vague and inconsistent. Incidentally, whilst on the subject of tax, I recently learnt that electric vehicles are entirely tax deductible for limited companies, even if they are not used for company business.
dmjram
If you use it wholly and exclusively and necessarily for your business trade then potentially yes.
Otherwise no.
shamusj
I am retired, so am a full time private investor. Can it count as an expense against my dividend income, or any other income for that matter?
dmjram
Not unless you want to be register your activity as a business with HMRC and be subject to income tax rather than capital gains tax on any profits.
Laughton
Interesting question and made me wonder about situation with regards to a SSAS.
OK - so a SSAS (sort of like a SIPP but not quite) isn't subject to tax but I don't see why a subscription wouldn't be allowed as an expense (research on investments) rather than me paying the cost out of "personal" money.
andrew150209
Hi Wilkonz,
Benefits in kind are not subject to corporation tax but are subject to Class 1A NIC at 13.8% that the business would have to pay on the value of the benefit. Then the employee has to pay income tax on the value of the benefit depending on whatever tax band they fall into
ezlifeme
Apologies for our global platers, but in the UK and for what its worth, I believe there is a lovely little nugget called a trivial benefit that a director can use. It can be used to buy any little treat provided each spend is under £50 and the total “treats” in a tax year are under £300. I know directors who would buy themselves a nice bottle of wine every couple of months using the company credit card and just code it to trivial expense in the books
https://www.gov.uk/expenses-an...
Perhaps you could arrange to pay stocko on similar instalments?
William K
Thanks Andrew 150209. I was thinking of the situation in which a small company has two directors and no employees (this is typical of many husband and wife companies). Neither of the partners - being over the relevant age - is liable for NIC. My assumption is that the BIKs are taxed as part of the profits - but not subject to other tax. I may have to check this out again with my accountant. Thanks again for your input.
Bigtim
Benefit in Kind specifically means that the benefit is taxed as salary meaning income tax + NICs and therefore a reduction in earnings before corporation tax. a BIK a is benefit provided to a director or employee in lieu of salary (like a company car) and is therefore taxed as such.
Depending on the th position of the directors in question (you note the directors being beyond personal NIC age) it may be preferable to take dividend income and pay the fees personally out of that.
The converse case is if it is a part of the company's trade to deal in securities, that would make the sub an arguable legitimate expense for the company (as a Bloomberg terminal or Level 2 access could also have been). In such a case it is not a BIK.
The Phoenix
Hi Ezlifeme love the handle you must have read the four hour work week I reckon, re the trivial benefit am I right in thinking this only applies to Ltd companies not sole traders ? and its £300 per director so in theory £50x6 per tax year allowed per director and is this separate from the £150 per staff member Ltd company Christmas party allowance ?
Thanks Andy
ezlifeme
Hi Andy - Thanks about my moniker - It is a continual reminder that my life towards retirement should now be getting simpler! Thanks for the questions but please DYOR - Ensure you check the latest HMRC notices on the subject, but when I posted the link it was still valid.
Yes you are correct they are separate allowances. You will lose the trivial benefit allowance if a single spend is over £50 of there are more than £300 total claimed in the tax year.
The Xmas one is interesting - I know a boss who after a few drinks left the open bar tab going a little longer. When his books were inspected the Total Xmas party spend claimed was just over the per head limit.
The rule was then applied AND THE WHOLE xmas party expenditure was disallowed - Bah Humbug
