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Previously on "Bank account transfer incentive - Taxable ?"

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  • Lance
    replied
    Originally posted by northernladuk View Post
    /thread
    it was at that point at post #2

    It is unanimous.
    Only some doughnuts Radish found on the internet disagree. Who'd have thought you could find people on the internet who are wrong?

    Leave a comment:


  • northernladuk
    replied
    Originally posted by Craig@Clarity View Post
    This sounds like the government backed incentivised switching scheme. I would treat the £4k as "other income" and subject to CT.
    /thread

    Leave a comment:


  • Craig@Clarity
    replied
    This sounds like the government backed incentivised switching scheme. I would treat the £4k as "other income" and subject to CT.

    Leave a comment:


  • northernladuk
    replied
    How is this one still going?

    Leave a comment:


  • Lance
    replied
    Originally posted by radish2008 View Post
    What I mean was that not everyone seems to be paying CT either from what I found.

    If it's not subject to income tax then how can it be taken from the company ? Presumable I pay a dividend that means I get taxed on that as income as well ?
    same was any any money. Div, salary or capital. And yes taxed as appropriate. This is pretty basic stuff.

    Or are you thinking yo can just take £4k from your company's bank account and trouser it?

    Leave a comment:


  • radish2008
    replied
    Originally posted by Lance View Post
    BS...... HMRC don't recognise personal preference when it comes to tax. There's law, and there's legislation.


    Like I said earlier. It's not income personally as it's not your money. So is not subject to income tax.
    It is revenue to the company, and therefore subject to CT.
    Unless the bank pay you personally, at which point it's a bribe or fraud (take your pick dependant on how it ended up in your own account).
    What I mean was that not everyone seems to be paying CT either from what I found.

    If it's not subject to income tax then how can it be taken from the company ? Presumable I pay a dividend that means I get taxed on that as income as well ?

    Leave a comment:


  • GhostofTarbera
    replied
    Originally posted by adubya View Post
    I'm not saying it isn't taxable.
    Take it out as an expense


    Sent from my iPhone using Contractor UK Forum

    Leave a comment:


  • adubya
    replied
    Originally posted by eek View Post
    Why wouldn't it be taxable?
    I'm not saying it isn't taxable.

    Leave a comment:


  • Lance
    replied
    Originally posted by radish2008 View Post
    Some people (google account opening incentives and you'll find the posts) argue that it isn't income and not subject to tax (see previous posts about incentives). There is no clear guidance from HMRC so it's down to personal preference.
    BS...... HMRC don't recognise personal preference when it comes to tax. There's law, and there's legislation.


    Like I said earlier. It's not income personally as it's not your money. So is not subject to income tax.
    It is revenue to the company, and therefore subject to CT.
    Unless the bank pay you personally, at which point it's a bribe or fraud (take your pick dependant on how it ended up in your own account).

    Leave a comment:


  • radish2008
    replied
    Originally posted by eek View Post
    Why wouldn't it be taxable?
    Some people (google account opening incentives and you'll find the posts) argue that it isn't income and not subject to tax (see previous posts about incentives). There is no clear guidance from HMRC so it's down to personal preference.

    Leave a comment:


  • eek
    replied
    Originally posted by adubya View Post
    OK, so your accountant has deemed it taxable then. Seems correct, although an odd category for it.
    Why wouldn't it be taxable?

    Leave a comment:


  • adubya
    replied
    Originally posted by radish2008 View Post
    Both good points. Accountant said it is logged as Other Income > Grant Income in FA if anyone else stumbles across this in the future.
    OK, so your accountant has deemed it taxable then. Seems correct, although an odd category for it.

    Leave a comment:


  • ladymuck
    replied
    Originally posted by Lance View Post
    Surely that's dependant on the accountant?
    I mean it's not grant income, but your accountant has simply identified it a useful place to put it.
    My accountant might say put as interest received with a note.
    It's treated the same and taxed as profit.
    I suppose Grant Income, much like my suggestion of creating a new account, really flags it up so the accountant is prompted to ask about it if year end is a good while away.

    Interest Income is also very valid but there is a chance the transaction note may be missed.

    Leave a comment:


  • Lance
    replied
    Originally posted by radish2008 View Post
    Both good points. Accountant said it is logged as Other Income > Grant Income in FA if anyone else stumbles across this in the future.
    Surely that's dependant on the accountant?
    I mean it's not grant income, but your accountant has simply identified it a useful place to put it.
    My accountant might say put as interest received with a note.
    It's treated the same and taxed as profit.

    Leave a comment:


  • northernladuk
    replied
    Originally posted by radish2008 View Post
    Both good points. Accountant said it is logged as Other Income > Grant Income in FA if anyone else stumbles across this in the future.
    Who says 'Ask your accountant' isn't good advice

    Leave a comment:

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