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jema Downsizer Moderator
Joined: 28 Oct 2004 Posts: 28235 Location: escaped from Swindon
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MarkS
Joined: 01 Aug 2006 Posts: 2626
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Jonnyboy
Joined: 29 Oct 2004 Posts: 23956 Location: under some rain.
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dougal
Joined: 15 Jan 2005 Posts: 7184 Location: South Kent
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Posted: Sun May 06, 07 9:14 pm Post subject: |
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There's certainly no prohibition on business gifts.
Otherwise there'd be a lot less bottles sold every Christmas!
As long as the recipient isn't an employee, or being "given" things in lieu of wages or is a relative of an employee or director (in which case there would be serious Income Tax questions), there shouldn't be a problem as long as its correctly recorded and nothing is concealed (and its not 'significant' compared to turnover).
You should be able to create a new cost heading (in the same general cost-of-sales section as you might have codes for write-offs, and commission paid to intermediaries.
Dunno about your software, but MYOB was very flexible about allowing you to renumber/rename cost codes.
You could ask your accountant how he'd like to see such gifts recorded.
Or write off some stuff and scrap it. Who is to say it wasn't fixable?
Or create a sales invoice for �1 for whatever item. And mark it "paid by cash". If its queried, you can explain, truthfully, that the price reflected it being a 'contra' deal.
But finding a means of recording them that your accountant is happy with is the safest recommendation... And it'd be much better to talk to him about maintaining goodwill, promoting the business, demonstrating your technological capabilities, etc, etc, and NOT about it being any sort of reward for services rendered.
You want to make a gift. Nothing dodgy. Where would he like it recorded? |
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alison Downsizer Moderator
Joined: 29 Oct 2004 Posts: 12918 Location: North Devon
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jema Downsizer Moderator
Joined: 28 Oct 2004 Posts: 28235 Location: escaped from Swindon
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dougal
Joined: 15 Jan 2005 Posts: 7184 Location: South Kent
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