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Self employed receives 2 gifts totalling £600 for helping

Hi I have a client a freelance photographer.

He received into his bank account 2 amounts totalling £600. Client says these were gifts to him for help he provided with auditioning roles and speaking to cameraman.

Is this turnover for self employed?

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30th Jan 2012 17:16

Some gift...

Wish I got £600 for 'talking' to accountants..

I think HMRC would be somewhat dubious on this one.

 

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31st Jan 2012 09:43

Yes

A bottle of champagne would qualify as a gift, but £600 paid into your bank account can only be taxable income .... unless you are running the Harry Redknapp defence!

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31st Jan 2012 10:04

Well i'm not so sure (probably wrong though)

Anyone else would have taken it in cash and that would be that.  He really is a very genuine chap.

The client genuinely believes this is not income, purely gestures of goodwill by friends.  As there was no contract, no expectation I wonder if HMRC would win!

It really makes no difference as he will be carrying forward losses and this will simply mitigate the loss for his first year.

Thanks guys

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