Rewarding / Gift to family member

[PurpleFox]

My brother has recently carried out some work for my Ltd company which has saved me (my company) a decent sum of money, probably £2,000 to £3000.

There is evidence that he has done the work in the form of certificates / documented test results with his name and approved body on.

He will not take any money for doing the work for me but I want to pass on my thanks / appreciation, possibly in the form of some vouchers / a decent power tool or even just a meal out for his family at their favorite restaurant.

Can I put this down as a company expense? I am concerned it might raise a flag as it's a close family member and not an employee.......

Any suggestions?

Thanks in advance.

[trickywoo]

PurpleFox said:

My brother has recently carried out some work for my Ltd company which has saved me (my company) a decent sum of money, probably £2,000 to £3000.

There is evidence that he has done the work in the form of certificates / documented test results with his name and approved body on.

He will not take any money for doing the work for me but I want to pass on my thanks / appreciation, possibly in the form of some vouchers / a decent power tool or even just a meal out for his family at their favorite restaurant.

Can I put this down as a company expense? I am concerned it might raise a flag as it's a close family member and not an employee.......

Any suggestions?

Thanks in advance.

You’ll need an invoice to put it through the company books.

If it was a personal gift it would be much easier.

[Taita]

Take him out for a slap up meal, put down as expense.

You'll never need to provide the name of the person. And he might have a different last name too

[Simpo Two]

trickywoo said:

You’ll need an invoice to put it through the company books.

If it was a personal gift it would be much easier.

But then it's not tax deductible

[cheeky_chops]

Could he invoice you a few hundred quid?

https://taxaid.org.uk/guides/information/a-startin...

Other option is buy a few £50 vouchers as incidentals

[Eric Mc]

If your business pays him for doing work for the business, then the business can claim the expense as a deductible business cost but he, of course, has to declare the income as taxable income.

It's quite striaghtforward.

It doesn't really matter how you describe the expenditure in the business accounts.

[Golfgtimk28v]

T and A entertainment?

[Eric Mc]

You won't get tax relief for "Entertainment".

[cheeky_chops]

is a £1000 "trading allowance" applicable? If so he could send a personal invoice and not pay tax or report (as long as not self employed)

https://taxaid.org.uk/guides/information/a-startin...

[Eric Mc]

cheeky_chops said:

is a £1000 "trading allowance" applicable? If so he could send a personal invoice and not pay tax or report (as long as not self employed)

https://taxaid.org.uk/guides/information/a-startin...

Actually, the "trading allowance" is aimed at low levels of "self employed" earnings. Self Employment and Sole Trading are the same thing.

[PurpleFox]

Thanks for the replies.

Trading allowance wouldn't work as although a sideline for him, he has an income stream which he declares.

Yes, he could send me an invoice of course, but he want's to do me a favour, help me out as his brother. I could also just get him something (vouchers / meal / power tool) personally but wanted to explore if this could be done via the company as it is the company that has saved the money......

[sgrimshaw]

Company buys something expensible eg equipment, iPad / Power Tool / etc etc

Some pillock loses it ........... damn it !

[JapanRed]

PurpleFox said:

Thanks for the replies.

Trading allowance wouldn't work as although a sideline for him, he has an income stream which he declares.

Yes, he could send me an invoice of course, but he want's to do me a favour, help me out as his brother. I could also just get him something (vouchers / meal / power tool) personally but wanted to explore if this could be done via the company as it is the company that has saved the money......

Is there anything that the company could legitimately buy and claim as an expensive which you could then give to him as a gift?

[Eric Mc]

Gifts are, technically, taxable in the hands of the recipients.

And if the business is VAT registered, it has to be very careful regarding how the VAT on these transactions are handled.