Referral Fee received. Now what?

[borderreiver]

Did your accountant advise on how to treat it for VAT?

Would interest me as well. Didn't the OP state it was a payment in dollars? So possibly from an overseas client?

[I just need to test it]

That's correct. Vat wasn't discussed as it was a payment from USA.

[speling bee]

That's correct. Vat wasn't discussed as it was a payment from USA.

Pay it into a pension fund and then nobody will quibble. Probably.

[d000hg]

Should probably still show it in the company books as a credit/debit to the director's loan account IMO, just to make it clear.

Not if it's not a loan from the company, but a mistake.

[speling bee]

Not if it's not a loan from the company, but a mistake.

It's a loan to the company (debt of the company to the director) that has come about by payment incorrectly into the Ltd's account. Possibly.

This is actually a really interesting question. I would speak to HMRC if my accountant couldn't advise.

What counts as taxable income?
Income from employment
Includes income from full, part-time and temporary employment.
If you get perks or benefits from your employer these may also be taxable.
Taxable company benefits - learn more
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Pension income
State Pension.
Personal or company pensions.
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Interest on savings
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The most common taxable state benefits are:
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Employment and Support Allowance - 'contribution' based (if you have paid enough National Insurance contributions)
Incapacity Benefit - from week 29
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Read the full list of taxable state benefits
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From a lodger in your only or family home if more than £4,250 a year (£2,125 if split jointly).
From a second property.
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The most common non-taxable state benefits are:
Disability Living Allowance
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All ISAs.
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[TheFaQQer]

Not if it's not a loan from the company, but a mistake.

You would show it as a credit to the DLA from the director, which can then be repaid by the company at any stage.

[Sausage Surprise]

Say you won it on a TV quiz show...they aren't taxable either

[TheCyclingProgrammer]

Not if it's not a loan from the company, but a mistake.

Event if its a mistake, its still a transaction into the company bank account which needs to be identified in the company books; double-entry bookkeeping says it has to have a matching account entry which in this case would be a credit to the DLA.

I once accidentally ordered a pizza on the company card when it should have gone on my personal card (obviously) - likewise I showed this as a debit from the DLA to show that I owed the company the money.

It might seem pedantic, but isn't that the point of double-entry bookkeeping?

[ASB]

There shouldn't be any additional NIC to pay if its just declared as additional income, so corp. vs personal income tax depends on OPs marginal rate. If they are a basic rate payer then its the same either way.

The VAT issue does complicate things though so personally I'd be inclined to pay tax on it personally. Its effectively money for nothing anyway!

I have recently discovered this is a right pain in the 'arris.

Basically you need to make a written application for a small earnings exception which can be done if profit is less than 5 odd k a year.

My better half receives payment for providing care. The type of care provided is fully relieved and the income does not exceed the allowances. The only way to declare this is (or was it might have changed this year) through the self employment pages, so you have to register. This then triggers the class 4 flat rate charge.

[TheCyclingProgrammer]

Basically you need to make a written application for a small earnings exception which can be done if profit is less than 5 odd k a year.

My better half receives payment for providing care. The type of care provided is fully relieved and the income does not exceed the allowances. The only way to declare this is (or was it might have changed this year) through the self employment pages, so you have to register. This then triggers the class 4 flat rate charge.

This only applies if you're registered self employed though. You only need to register as self employed if you're trading. If you receive a one off piece of income such as in OPs case you can just put this in the additional income box. No exemption certificate required.