"Income"

Anything more than 99p.

You guess wrong.

No. No.

There is no set amount. Even 1 is a taxable income. For any payment to count as a gift, it must be unrelated to any work you've performed (e.g. birthday, wedding, retirement etc). There are certain exemptions, e.g. a small gift for suggesting a good idea to your company, if it's open to all staff. You should keep a record of any work performed and payments received, and make an annual declaration to your tax office. If the tax liability is small (say 200-300), it will be deducted by adjusting your code.

Alec

In message of Tue, 17 Aug 2004, Alec writes

Actually - up to £2,000

DF

Any legitimate business expenses can be deducted from this source of income, and only the net figure is taxable.

I use a rule of thumb, on which I would welcome comments, that if the donor gives you money which he puts in as an expense (and therefore tax deductible) against his business, then it's income to you. But if he doesn't, then it isn't.

Rob Graham

I would imagine it's in Petty Cash.

In message , Robin Graham writes

Good clear thinking.

Sadly I have never seen a tax inspector with thumbs.

I knew you'd like it.

Quite so. However, if you take a friend or relation on holiday he sure as hell won't declare it on his tax return as a taxable benefit. Nor would he if you gave him 100 to spend on himself, unless you declared it as an expense on your tax return - then he might.

Rob

On the other hand, I asked the IR about the 50 quid 'finders fee' that comdirect pays to customers who recommend new customers. Apparently, that's classed as a 'gift' and isn't taxable. I bet comdirect class it as an expense though. ;-)

Best Regards, Alex.

Yes. There doesn't seem to be an inflexible rule about hits.

Rob

Your friend probably didn't do anything in return for the holiday, and you wouldn't be allowed to put the holiday as an expense in your tax return - entertaining isn't an allowable expense.