Bonus to individual from client | AccountingWEB

Bonus to individual from client

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?

Thank you.

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Cloudcounter |

Not a Taxable receipt?

justphil |

Just give the man his cheque ....

Hansa |
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Luke |
Luke's picture

unsolicited gift

Hansa |
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