New queries, issue 4216

Service charge

My director client receives a service free of charge from his limited company and pays income tax accordingly on this service as a benefit in kind.

However acting as a sole trader he then sells this service to a third party.

Can he offset against this sale the unpaid cost but agreed value of the service which has been taxed as a benefit in kind?

Readers’ comments would be welcome.

Query 17 452 – Tax hound

Hauled off

We act on behalf of the director of a haulage company that has recently gone into liquidation.

The haulage company had six directors while it was trading.

During the last three months of trading the company did not have the financial resources to pay for some of the fuel for the lorries and a telephone bill.

Consequently the director paid these expenses amounting to £10...