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Corp Taxation on Bank commission

Client has received a 'golden hello' commission from new bank of gbp 4000 -

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Hello

I have a client who has received a large 'golden hello' commission from their new bank  - gbp4000 and as they are a limited company I have advised them that there is CT to pay on this income.   First time I have seen such a commission being paid out by the bank so welcome any thoughts on this and whether anyone has seen such a payout and tax treatment thereon.

 

Thanks

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By David Ex
01st Aug 2021 17:52

I’ve never seen a £4,000 incentive to change bank. Could you tell us which bank it is?

I’d say it’s taxable.

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Replying to David Ex:
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By ABC123Accountant
01st Aug 2021 18:23

Yes I think it is taxable as it is 'in the course of business' and to the limited company and not the directors. I agree it does seem a large amount!

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By ABC123Accountant
01st Aug 2021 18:21

It is Metro Bank

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Replying to ABC123Accountant:
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By David Ex
01st Aug 2021 19:42

ABC123Accountant wrote:

It is Metro Bank

Thank you. Will have to contact them!!

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Replying to David Ex:
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By ABC123Accountant
01st Aug 2021 19:57

I think it was a special deal for NW company bank holders to convert...I had a look on Metro Bank website but no actual % or commission data is explained on it!!

Thanks for your response

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By Wanderer
02nd Aug 2021 07:21

It's all part of the requirement for Nat West & RBS to divest themselves of business accounts.
Customer could pick from a number of banks to go to, not just Metro,
Seen quite a few.
https://www.accountingweb.co.uk/any-answers/taxable-incentive-from-rbs-t...
Google NatWest dowry for further references.

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Replying to Wanderer:
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By Hugo Fair
02nd Aug 2021 11:04

And the more recent/detailed response from HMRC at https://www.accountingweb.co.uk/any-answers/hmrcs-response-re-rbsnatwest...

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Scooby
By gainsborough
02nd Aug 2021 11:04

Good recent thread on this - related to a sole-trader but might give you a starting point to look at https://www.accountingweb.co.uk/any-answers/hmrcs-response-re-rbsnatwest...

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