Goodwill gesture for providing work

Goodwill gesture for providing work

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Hi all

Client wants to claim for payments to customers who provided work, basically as a thank you.  Told him no chance as doesn't pass W&E but they're adamant its business.  Nothing I'm missing here is there?

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By andrew.hyde
31st Oct 2014 13:33

Discount?

If it's a discount, or cashback, or rebate I don't see a big problem.  We're not getting the full facts here I sense.

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By bigmuggsy
31st Oct 2014 13:52

Loss assessor company, on payout will give the person whose house has been damaged and filed a claim cash for using their company.  Basically as a thank you.  Suppose could argue its discount.

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By johngroganjga
31st Oct 2014 14:33

Don't understand why you think it fails the W&E test.  If it's not done for business purposes, why is it done?

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By bigmuggsy
31st Oct 2014 14:47

It's done to simply say thank you to a customer. I'm thinking it doesn't pass because it isn't wholly and exclusive? Doesn't have to give them money does he, they'd have used the company either way? Appreciate if u could outline your argument for it being

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By buttinski
31st Oct 2014 15:04

Bear in mind that an outright bribe

might be W&E but that doesn't mean A is OK!

Edit: what we haven't been told is how this payment is to be structured -  a cash payment to the company, or two weeks in Barbados for the purchasing director.  It does rather make a difference

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Replying to atleastisoundknowledgable...:
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By bigmuggsy
31st Oct 2014 15:09

Wrong way around

buttinski wrote:

might be W&E but that doesn't mean A is OK!

Edit: what we haven't been told is how this payment is to be structured -  a cash payment to the company, or two weeks in Barbados for the purchasing director.  It does rather make a difference

no it's the other way around - company is paying the customer to say thank you
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Replying to Wes90:
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By buttinski
31st Oct 2014 15:35

No

bigmuggsy wrote:
buttinski wrote:

might be W&E but that doesn't mean A is OK!

Edit: what we haven't been told is how this payment is to be structured -  a cash payment to the company, or two weeks in Barbados for the purchasing director.  It does rather make a difference

no it's the other way around - company is paying the customer to say thank you

By 'company' I meant your client's customer i.e. the supplying company is paying its customer - yes?

So the supplier is paying its customer/customer's purchasing director (for e.g. only).

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By andy.partridge
31st Oct 2014 15:04

I suspect you are thinking along the gifts/entertainment line?

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Replying to jaha12:
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By bigmuggsy
31st Oct 2014 15:08

Exactly

andy.partridge wrote:

I suspect you are thinking along the gifts/entertainment line?

. Yes that's exactly what I'm thinking
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paddle steamer
By DJKL
31st Oct 2014 15:10

Presume not new kitchens for statutory repair contracts ?

 

Given the plethora of e mails I keep receiving from solicitors these days re bribery legislation I would now be paranoid re any inducement/reward payments in case I stepped over some line.

Life is now so complicated.

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By bigmuggsy
31st Oct 2014 19:58

Thanks for the replies folks. I'll let them claim it and they can explain to the taxman if asked why it's W&E.

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By johngroganjga
31st Oct 2014 21:21

To be W&E it doesn't have to be necessary. What counts is the reason for doing it, even if that reason is misconceived in someone else's eyes.

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By rawa363
06th Nov 2014 10:36

Clarity needed

If it's a payment to customers they did work for it's a discount.

If it's payment to past customers who introduced new customers who 'provided work' then it's a commission or a referral fee. Either way it's a valid expense.

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