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Are thank you's taxable income?

Clients only income is PAYE. But, uses his music talent (unconnected to his type of employed work) to play in a band. On the whole this is a hobby for which client receives no remuneration. However a few occasions has received money after a concert as a thank you. Seems it's payment that has been made to the band as a whole and redistributed to the members. I'm thinking theirs no contractual obligation to the money, and no expectation of receiving it and therefore not taxable. Am I right?

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19th May 2017 17:41

As you know this can be a tricky issue, but on the facts provided it isn't taxable. HMRC would probably go for this too as the alternative would be to bring in expenses that would likely turn the "venture" into a loss.

Also, notwithstanding being dropped from the 2017 FB (probably only a temporary hiccough), the £1,000 exemption for small business could be used for 2017/18 onward, which from all indications would be enough to cover your client's income.

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