Hi all,
I have a questions regards the payment to shareholder. My client is a startup and would like to pay a non-cash voucher, something like Christmas bonus to its shareholder of around £1k. The shareholder is not an employee as the business cannot afford any salaries, but he is involved in company's day to day activities, hence this bonus/reward. My only concern is whether the business can issue this voucher and threat it as benefit in kind, or should it be treated as dividend payout in form of a voucher? Any answers/help greatly appreciated. Thanks.