Tax on referrals

[Mailman]

(from the front page)

Her Majesty’s Revenue and Customs (HMRC) are onto the payouts, and advise that “any gratuity or other profit or incidental benefit of any kind obtained by the employee” is recognised as taxable income.

Bah, you contractors are safe seeing as you arent employees!

Mailman

[snaw]

So you're not a contractor, and you're not from the UK?

[tim123]

in reality the payment should go to the limited co. (and need invoicing properly, VAT accountingetc.....)

It's one of the reasons why some pay in vouchers (as they will go straight to the individual)

tim

[DaveB]

Taxation on referral fees as BIK etc only applies to co. employees where they are rewarded by their own co.

In this instance another co. is rewarding you directly. You are not one of their employees. Nor are you invoicing them for it as part of a service from your Ltd.

Take it as a personal payment, show it on your tax return as other income and deal with it that way.

[tim123]

Taxation on referral fees as BIK etc only applies to co. employees where they are rewarded by their own co.

In this instance another co. is rewarding you directly. You are not one of their employees. Nor are you invoicing them for it as part of a service from your Ltd.

Take it as a personal payment, show it on your tax return as other income and deal with it that way.

Not true.

If an employee (e.g. a buyer) receives an 'incentive' from one of his company's customers, that gift is taxable. Obviously there are excemptions for low value items.

tim

[DaveB]

Not true.

If an employee (e.g. a buyer) receives an 'incentive' from one of his company's customers, that gift is taxable. Obviously there are excemptions for low value items.

tim

As contractor running a ltd, you arn't an employee of the ltd, just a director, so again it doesnt apply.

This only applies to employees, not to contractors who arn't employees, as mailman said to begin with.

[Mailman]

So you're not a contractor, and you're not from the UK?

Thats right...Im one of them nasty foreigners keeping a pom out of a job!

Mailman

[TheMonkey]

You can give vouchers which AFAIK aren't taxable benefits. Then you sell them on ebay for average 90% their value.