Gifts from Clients

[Jasandjules]

Ok,

I did a rather good job for a client and have been acting for free. She has now just sent me a fairly large sum of money as a thank you gift.

Does anyone know if I must run this through the company - the cheque is made out to me so I am not sure I can even do that. And what are my tax implications (if any).

[Jasandjules]

I am self employed.

[Jasandjules]

anonymous said:

[redacted]

It is a personal cheque.

The case has been settled as well.

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

[Jasandjules]

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

[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.

[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.