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Reply to: Tax on referrals
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Previously on "Tax on referrals"
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You can give vouchers which AFAIK aren't taxable benefits. Then you sell them on ebay for average 90% their value.
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Thats right...Im one of them nasty foreigners keeping a pom out of a job!Originally posted by snawSo you're not a contractor, and you're not from the UK?
Mailman
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As contractor running a ltd, you arn't an employee of the ltd, just a director, so again it doesnt apply.Originally posted by tim123Not true.
If an employee (e.g. a buyer) receives an 'incentive' from one of his company's customers, that gift is taxable. Obviously there are excemptions for low value items.
tim
This only applies to employees, not to contractors who arn't employees, as mailman said to begin with.
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Not true.Originally posted by DaveBTaxation on referral fees as BIK etc only applies to co. employees where they are rewarded by their own co.
In this instance another co. is rewarding you directly. You are not one of their employees. Nor are you invoicing them for it as part of a service from your Ltd.
Take it as a personal payment, show it on your tax return as other income and deal with it that way.
If an employee (e.g. a buyer) receives an 'incentive' from one of his company's customers, that gift is taxable. Obviously there are excemptions for low value items.
tim
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Taxation on referral fees as BIK etc only applies to co. employees where they are rewarded by their own co.
In this instance another co. is rewarding you directly. You are not one of their employees. Nor are you invoicing them for it as part of a service from your Ltd.
Take it as a personal payment, show it on your tax return as other income and deal with it that way.
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in reality the payment should go to the limited co. (and need invoicing properly, VAT accountingetc.....)
It's one of the reasons why some pay in vouchers (as they will go straight to the individual)
tim
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Tax on referrals
(from the front page)
Bah, you contractors are safe seeing as you arent employees!Her Majesty’s Revenue and Customs (HMRC) are onto the payouts, and advise that “any gratuity or other profit or incidental benefit of any kind obtained by the employee” is recognised as taxable income.
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