Account code for Gifts for subcontractors?
Question asked by Julie McNeil 7 years ago
I'm trying to figure out how to handle a gift for a subcontractor (not employee) in terms of account code? Any ideas?
Hi Julie,
Currently, we do not have a default account code set up for gifts. I would advise creating your own by heading to Settings > Accounting > Account Codes > Create Account Code, from here you can then choose the account name and relevant account type.
All the best,
Tommy
Best answer
Hi Julie - in general Entertaining is either for staff, and so generally allowable for tax, and for anyone else, and so generally not tax allowable. So I'd just change the account name to Entertaining and stick it there.
Are we talking a subcontractor in the CIS? If so have you checked that it's not caught as a CIS payment? I'd guess that if the gift falls outside the contract for construction services it's probably not a "payment" for CIS but might be worth checking?
Hi Julie,
Unfortunately, I am unable to give out advice on the account type to use as I am not a qualified accountant. It is advised to check this with an accountant.
Apologies,
Tommy
Hi Tommy
Would the best account type be Entertaining Clients rather than Entertaining Staff? I'm thinking a subcontractor is more of a supplier than staff?
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