I own and run a small limited company in the UK. Via one of our associates, we were recently approached by a 3rd party asking for help in paying medical bills for treatment that was not covered by an insurance.
To make the long story short, the company can and is willing to pay these medical bills (the amounts aren't that large).
I have basic account knowledge and for the last few years have been running company accounts myself. Yet I am struggling to understand how this payment would work. Obviously, I can record it as a cash expense, but I'm not sure how it would work from a tax point of view. As far I see, it's essentially a charitable payment, but there is no charity involved - the payment would be made directly to the hospital.
Things to note: the 3rd party is not related in any way to the company and is not a UK resident; the medical expenses are for treatment in a UK hospital; the payment would be in GBP directly to the hospital.
My question is: what are tax implications of this payment?
UPDATE: some more details. The associate is someone I met some time ago when travelling in that country. Our relationship is limited to occasionally referring business each other's way. There is no contract, no minimum referrals and certainly no compensation of any kind. Basically, he's a friend that lives in another country. The 3rd party is a relative of his. That country being 3rd world, they can't possibly afford UK medical costs, hence he asked me for help.