On the 6th day of Christmas, the Taxman gave to me, tax relief on buying my clients a Christmas prezi!
Tis the season to be jolly and as a way of sharing this joy people like to give gifts to others, whether it is to our loved ones or business contacts to name but a few.
Over the last few weeks, I am sure you have all seen a wide variety of gifts being sent to the workplace from business contacts. In the tax department, we have received an array of calendars, diaries and even a stress ball in the shape of an apple, the majority of which are covered in business logos.
Some lucky people (usually the boss) have received wine, food hampers and boxes of chocolates from clients as a thank you for all of their hard work during the year.
So long as the gift costs no more than £50 and incorporates a ‘conspicuous advertisement’ for the trade, the cost of the gift can be treated as an allowable expense for tax purposes. For anyone wondering what a ‘conspicuous advertisement’ is, it is a clearly visible advertisement hence the calendars, diaries and stress balls being covered in company logos. The £50 limit relates to all gifts given to the same person in the same accounting period.
It is important to note here that you are generally not able to have tax relief for having fun so any gifts of alcohol, food, tobacco or a token/voucher exchangeable for goods are not allowable for tax purposes even if they do include a ‘conspicuous advertisement’ on it.