newluke16

Did you respond to the wrong post, HMRC Admin 32?

My question is how would I record this expense, and as what? It's essentially a cashback/discount. Although at arms-length as the customer did not pay me directly. I'll keep a copy of the transaction cost via bank transfer along with the customers information.

I'm not an insurance provider or agent, does the BIM40650 guidance apply to me? I would still like my original questions answered please especially #3 above. Box 17 includes "commissions, and any discounts".. Although I'm providing cashback to the customer, they actually bought from a furniture shop, not me. To be classed as a cashback or discount must this come directly from who the customer originally paid i.e the furniture store? Thank you

Just to clarify, I'll only pay income tax on the £10? As I would have received £20 from the company, but paid £10 to the third party/customer as agreed and classed as a miscellaneous expense. Thank you

Hi, I get paid £60 to refer new customers to a furniture business. I would like to pay a person £50 if they either: (A) Buy furniture from a shop (not owned or run by me). Or.. (B) Refer another person to buy furniture from that shop. This is a marketing expense for me but I'm not sure how to handle the payment to the person. #1 Do I pay income tax etc on the £10 profit or do I pay tax on the whole £60? #2 Would I record this £50 expense as marketing, commission, reward, bonus, referral fee? #3 All transaction will be through my main business bank account with dates/names/address recorded, would this be enough proof of the expense or would I somehow need to ask the customer to invoice me?

I would say this is a marketing/advertising expense. Did you manage to find out any more information? The link provided above is more focused on employee gifts which isn't very relevant here.

Hi, I'm considering starting a new business in which I receive a fee/commission from a company (e.g. £20) if I arrange/refer a new customer to them. I would then share some of this with the customer so I take £20 from the company and forward £10 to the customer. The £10 is an marketing expense on my part and not profit, how would I label or keep record of this? Please note the above is just an example scenario and made up figures.