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?
Replies (13)
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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.
Don't understand why you think it fails the W&E test. If it's not done for business purposes, why is it done?
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
No
no it's the other way around - company is paying the customer to say thank youmight 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
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).
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.
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.
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.