Reply to: Bank account transfer incentive - Taxable ?

[Lance]

/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?

[northernladuk]

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

/thread

[Craig@Clarity]

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

[northernladuk]

How is this one still going?

[Lance]

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?

[radish2008]

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 ?

[GhostofTarbera]

I'm not saying it isn't taxable.

Take it out as an expense


Sent from my iPhone using Contractor UK Forum

[adubya]

Why wouldn't it be taxable?

I'm not saying it isn't taxable.

[Lance]

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).

[radish2008]

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.

[eek]

OK, so your accountant has deemed it taxable then. Seems correct, although an odd category for it.

Why wouldn't it be taxable?

[adubya]

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.

[ladymuck]

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.

[Lance]

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.

[northernladuk]

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