Gifts from Clients

[Eric Mc]

If you work in a sector where there is a regulatory framework, then checking with their rules would be highly advisable.

[Jasandjules]

Accountant says it is related to the work undertaken and accordingly is subject to tax.

[Eric Mc]

Exactly as I predicted.

[StevieBee]

Aside from the legalities and ethics is the president that acceptance of the gift creates.

I'm assuming that the value of the gifts is less than the commercial value of the work you provided for free. If at some point in the future the same client requires the same type of work but on a commercial bases, they will have their mind the value of that work based upon the gift they provided to you.

[Jasandjules]

StevieBee said:

Aside from the legalities and ethics is the president that acceptance of the gift creates.

Correct, I will be unable to undertake any further work for this client.

Eric - indeed you were right, I suppose given your knowledge that is little surprise.

[Eric Mc]

It's not an unusual occurrence - and an area on which HMRC has, over the years, issued various rules and guidelines covering Income Tax, Corporation Tax, VAT and PAYE Benefits in Kind.

[allergictocheese]

Jasandjules said:

It is a personal cheque.

The case has been settled as well.

I think I will ask my company accountant! And regulator.

As a CMC I suppose that's the MoJ. Good luck getting sensible info from them!

[Countdown]

Jasandjules said:

StevieBee said:

Aside from the legalities and ethics is the president that acceptance of the gift creates.

Correct, I will be unable to undertake any further work for this client.

Out of curiosity - why can't you undertake further work?

[Jasandjules]

Countdown said:

Out of curiosity - why can't you undertake further work?

I would not be keen to do so as the previous gift could be considered an inducement to undertake further work for lower rates etc. I would rather not have that risk.

That said, my Regulator appears to think it is fine to accept gifts and to undertake further work.