As an influencer or entertainer, your image is often central to your brand. So, it's natural to wonder whether your limited company can cover the costs of medical or cosmetic procedures. This blog post breaks down the tax implications , helping you understand what’s allowable and what’s not.

Corporation Tax and medical expenses

Generally, everyday medical costs aren't tax-deductible because they're not considered wholly for business purposes. While you might argue that certain health-related costs are necessary for your work, HMRC will likely view them as providing a personal benefit too.

However, there are exceptions. If you’re injured while working for your company (e.g., during a video shoot), the costs of restoring you to your previous condition are usually allowable. But, if the injury occurs outside of work, these costs won't qualify for tax relief.

Cosmetic procedures are a different story

Cosmetic procedures and enhancements are treated differently. Typically, these aren't tax-deductible as HMRC views them as fulfilling a personal desire rather than restoring you to a previous state.

In very rare cases, cosmetic surgery might be allowable if it’s solely for professional purposes. For example, if you can clearly demonstrate that a procedure was essential to correct a perceived inadequacy impacting your career, it might be allowable. However, proving this to HMRC is difficult. They’ll scrutinise whether the procedure was also motivated by personal reasons.

Benefits in Kind (BIK)

If your company pays for a cosmetic procedure for you, it’s likely to be treated as a Benefit in Kind. This means you’ll be taxed on the value of the benefit as if it were part of your income. This is because HMRC will likely see the procedure as addressing a personal desire rather than a business need.

However, if the company pays for medical treatment following a work-related injury (as mentioned babove), this wouldn’t be considered a BIK, as it's seen as getting you back to work.

VAT

Standard medical treatments are often VAT exempt. However, purely cosmetic procedures are usually subject to VAT at the standard rate (currently 20%). If your company pays for a cosmetic procedure, VAT will be charged.

Businesses can normally reclaim VAT on expenses incurred solely for business purposes. However, as cosmetic procedures are unlikely to be considered wholly for business, the company probably won’t be able to reclaim the VAT.

In summary

While there are some limited circumstances where medical expenses, particularly those resulting from work-related injuries, can be covered by your company, cosmetic procedures are rarely tax-deductible and are likely to create a Benefit in Kind. It’s always best to consult with a qualified tax adviser to discuss your specific circumstances.

Disclaimer: This information is for guidance only and does not constitute professional advice. Always seek advice from a qualified accountant or tax adviser regarding your specific situation.

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