Hello,
I would like to offer our current clients a referral reward for every new client who we were recommended to and they use our services in my beauty salon.
It will be in a form of cash or a highstreet store gift card (beauty department).
Is a cash payment and/or gift card deductible expense? Is there any maximum amount limit I can give to each customer in one tax year?
Thank you.
Replies (12)
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Would we get a gift voucher for answering this question? What does your accountant have to say on the matter?
Would we get a gift voucher for answering this question? What does your accountant have to say on the matter?
Ignore stepurhan. He's much more approachable on a Tuesday.
I'd say it would be a deductible expense.
It's not a gift, as a gift is something willingly given to someone without payment. I would say you are getting some form of payment for the voucher/cash in that you are getting a new client out of it.
So long as it is a genuine referral payment, then there is no maximum that can be given, although I suppose you'll want the value to be less than that of the new business you've won as a result. (By genuine I mean it's not a £100 voucher to your mother for referring your Aunt)
Ignore stepurhan. He's much more approachable on a Tuesday.
Here less than a year and making your first contribution and you thought this was a reasonable thing to say?
Take a more active role in the forums for a while. See how many freeloaders get abusive when you give an answer they don't like (even if it is actually correct advice). Then you can come back and tell me I'm cynical for not wanting to just hand out free advice if you still feel that way yourself.
Oh I've been here much longer than a year my good sir. I come under many guises...
If you think someone's a freeloader, just ignore their question. If someone wants to answer them, then they will.
All your snide comments do is put people off from posting , some of whom you may even deem worthy of your precious time.
There's an irony in people who spend their day on an internet forum, complaining about having their time wasted.
Anyway, it's clear today is one of your bad days. See you next Tuesday...
All your snide comments do is put people off from posting , some of whom you may even deem worthy of your precious time.
Good. If it puts freeloaders off posting and helps return the forum to its original purpose, most regular readers will be delighted.
You say it’s tax deductible. I would say you have insufficient information to assert that. If I am correct, you are not helping the OP.
You say it’s tax deductible. I would say you have insufficient information to assert that. If I am correct, you are not helping the OP.
Oh look, another member of AWebs Condescending Crew.
It's a good thing for the OP that I'm right then I guess.
Or you could enlighten us as to what additional information you require. Go on, give us a glimpse at this mysterious knowledge which you hold.
andy.partridge wrote:
You say it’s tax deductible. I would say you have insufficient information to assert that. If I am correct, you are not helping the OP.
Oh look, another member of AWebs Condescending Crew.
It's a good thing for the OP that I'm right then I guess.
Or you could enlighten us as to what additional information you require. Go on, give us a glimpse at this mysterious knowledge which you hold.
You may be right. You may be wrong. As Andy says, there's not enough information to say for sure. Would I allow it? Probably. This is one of those issues that are normally quite safe and generally involves nominal amounts. In any case it can be very easily be made allowable if the client tells you what they intend to do beforehand.
Some things you might like to ask clients offering this kind of referral are:
- Is the referral reward scheme advertised/promoted?
- Is the reward given freely and non contractual with the customer?
Andy is probably (I'm guessing here) querying whether the referral vouchers are business gifts. That doesn't matter if there is sufficient quid pro quo but, of course, you cant have that without a contractual obligation.
Not helping you, Saddo The Keyboard Warrior, but happy to help the OP.
Aww, Andy. That hurts.
All I want is a piece of the forbidden fruit that is your knowledge.
I'll assume that the reason such knowledge isn't forthcoming is that it does not exist.
And I take exception to being called a "Keyboard Warrior". One, I am posting on my phone, not a keyboard, and two, I am just as obnoxious in person, I don't save it all for the internet.
You carry on assuming. Just because I replied to you it doesn’t make us friends, Ok, even if you write it in your diary.
You carry on assuming. Just because I replied to you it doesn’t make us friends, Ok, even if you write it in your diary.
Don't say that Andy. I thought you could be my AWeb bff.