I have a client who is in the Recruit to Recruit Industry. If someone refers a client to her then she will make a gift to the person making the referral. Eg of gifts can be spa days; night in a hotel; make up - most of the items can cost £100+ In fact her website states ''We offer £250.00 for the introduction of candidates with 6months + industry experience, alternatively a choice of fun packed activities from our Red Letter Day options''
1) Which Nominal code should I put them too? Can they be classed as a 'commission' / direct costs
2) Can I claim the VAT back on any invoices
3) Are they 'allowable expenses' for the Corporation Tax computation?
Also - she sometimes entertains clients at eg a spa day as an inducement (expensive I know!!). In this scenario - same three questions please
Hope someone can help
Chesh
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
1) Which Nominal code should I put them too? Can they be classed as a 'commission' / direct costs
2) Can I claim the VAT back on any invoices - if the supplier invoice has vat on it and a vat number and if the client them selves is vat registered themselves - then yes. but as theres no company details, NO
3) Are they 'allowable expenses' for the Corporation Tax computation? yes if it has the company advertised on it. BUT NO AS NO DETAILS OF COMPANY ADVERTISED.
Gifts are allowed if it has the business advertised on it e.g. a key ring with business details NOT a bottle of wine.
Sorry a quick reply in between working.
-- Edited by lor on Monday 6th of May 2013 12:35:06 PM
I wouldn't allow those expenses at all and would put them as disallowable expenses. Would not have them on the vat return. they would be a disallowable expenses as far as the tax comp is concerned as well.
Ive disallowed for VAT but just wasnt sure when it came to CT. The Accountant will be doing the CT comp but my client seems to think they are 'allowable', so thanks for the help.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
