Client, Mr X trades through his company X Ltd.
A client of his has recently given him a cheque made payable to Mr X personally for £100 and a personal letter thanking Mr X for the efforts he has put in helping client over last few years. Mr X helped out client significantly at no charge a couple of years ago before client became a client of X Limited.
My gut feeling is that Mr X should declare the money on his personal tax return as untaxed income but that it does not need to go through X Limited and also have VAT paid over but I am unsure about this.
Can anyone give me their opinion please?