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Post Info TOPIC: Referral fees
Jay


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Referral fees
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Hi,

My client is a self employed web designer and despite advertising did not really have a great take up of new business.

He has now written to exisiting clients advising that if they refer a customer to him and he secures work,  he will make a payemt to them as a referral fee.

He did secure a number of new clients thorugh this process.

His payments did not amount to much, but I am at a loss as to how to account for them on his SA Return. Initially I thought it could be "advertising" but it does not seem to fit too well in this catergory.

Any suggestions would be most welcome.

 

Jay

smile

 

 



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Robert Pearce


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You could treat them as commission payments and show them as part of cost of sales.



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Pearce & Co - Chartered Accountant and Chartered Tax Adviser 

www.pearceandcoaccountants.co.uk

These comments are outline only and are not a substitute for specific professional advice.
Sweetpea


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Hi,

I would say the same, sales commission and show them as a direct expense to the business.

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www.lhowardbookkeeping.co.uk
Jay


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Posts: 262
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Thank you. Problem solved



Jay


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