“We make a living by what we get, but we make a life by what we give”. Winston Churchill
Christmas is nearly upon us – it is traditionally a time to think of those we care for and show them how much they mean to us.
The following three points will mean that the cost of gifts given to clients/customers can be treated as an allowable expense for tax purposes.
1) Allowable Gifts
The gift must not be food, drink, tobacco or a token or voucher exchangeable for goods.
2) Company Logo
The gift itself must carry an advertisement for your business. A business logo is perfect for this. Make sure the logo is actually on the item itself, not just the packaging
3) Cost of the Gift
The cost of the gift must not exceed £50 – and the total cost of gifts to the same recipient must not exceed £50 in your accounting period.
Keep in mind that if you are VAT registered then any VAT on these gifts would also be recoverable – subject to the above 3 rules.
The above rules apply to limited companies as well as to sole traders and other unincorporated businesses.
Any gifts that do not fall into the above criteria would be treated as business entertaining and would not be allowable for tax.
Quay Accounts would like to wish your business happiness, productivity and prosperity at this time of year. May your business thrive and be a success.
Quay Accounts is on hand for you and your business – we are firmly in your corner – with a wealth of experience and in many cases we have been there and done that and got the Xmas jumper to prove it. So please do not hesitate to contact us.
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