Hi all - was hoping someone could help me with a bit of a unique situation.
I'm a digital freelancer & contractor based in the UK and my mother is who is based in Australia runs a small online store. She is planning to retire within the year but until then wants my help on various digital tasks as she struggles with them. She keeps insisting on paying me as it's my job anyway (I generally work with large brands/contract with government departments etc) but I keep refusing. She now just says she wants to give me some money anyway as a sort of early inheritance; we're stuck in this kind of polite tussle. Truth is if I was to properly invoice through my limited company i'd be paying higher rate tax on it, plus corp tax etc and it would just make it not worth it from that point of view, yet I'm aware that although we're blood related that if we class it as an inheritance or a gift that could look dodgy. Where's the line on this one?
Appreciate it!
I'm a digital freelancer & contractor based in the UK and my mother is who is based in Australia runs a small online store. She is planning to retire within the year but until then wants my help on various digital tasks as she struggles with them. She keeps insisting on paying me as it's my job anyway (I generally work with large brands/contract with government departments etc) but I keep refusing. She now just says she wants to give me some money anyway as a sort of early inheritance; we're stuck in this kind of polite tussle. Truth is if I was to properly invoice through my limited company i'd be paying higher rate tax on it, plus corp tax etc and it would just make it not worth it from that point of view, yet I'm aware that although we're blood related that if we class it as an inheritance or a gift that could look dodgy. Where's the line on this one?
Appreciate it!