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Paying bonuses. Small Business question

10 replies

AlwaysFullOfQuestions22 · 17/11/2022 21:15

I have a small business. 2 staff. And an accountant.
My accountant has done an amazing job and gone above and beyond to help me set up.
Can i pay her a bonus out of the business. Its a ltd company.
Can i draw in cash or better to just bank transfer. Only around £100 as I've only been trading a couple of months.
If i do cash, I'd obviously get a bank recipet and she'd see it at the end of Dec on the books anyway so would know what its for and a genuine withdrawal.

OP posts:
Comefromaway · 17/11/2022 21:17

She would have to give you an invoice/receipt for it.

AlwaysFullOfQuestions22 · 17/11/2022 21:40

If it was cash?

What about transfer with the reference xmas bonus?

OP posts:
Comefromaway · 17/11/2022 21:43

You should have invoices for everything like that. As should she.

Comefromaway · 17/11/2022 21:44

She isn’t your employee, it would need to be recorded as payment for services rendered, not a bonus.

DelilahBucket · 17/11/2022 21:44

If you are paying a business and want to make it tax deductible they will have to give you an invoice.

AlwaysFullOfQuestions22 · 17/11/2022 21:45

Yes i can do an invoice no problem. Im guessing that would just say bonus?

OP posts:
AlwaysFullOfQuestions22 · 17/11/2022 21:46

Shes not a business. Just a solo account all above board though.
Im a Ltd company. So i basically can transfer her it and write an invoice.

OP posts:
BotterMon · 17/11/2022 21:49

Just buy her a present if she's a sole trader. If you give her money, she'll have to include it in her tax dec.
If you've only been trading for 2 months I wouldn't be splashing the cash - you may find you'll need it more than her in the future!

AlwaysFullOfQuestions22 · 17/11/2022 21:52

Ok thank you.

OP posts:
Comefromaway · 17/11/2022 21:53

You are her client. Whether she is a sole trader or a ltd company that still makes her a business.

she gives you the invoice, not the other way around.

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