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Gifts for clients

  • Christmas is now on its way and you are now deciding what to give your best customers?
  • The general rule is there is no tax relief for gifts.
  • However a business can give away an item incorporating a conspicuous advertisement provided it costs less than £50.
  • No relief is given on food, drink, tobacco or vouchers, even if less than £50.
  • There is also a Vat issue to consider – Vat can only be reclaimed on gifts with a total value of no more than £50 per client (i.e. £58.75 including VAT) including food, drink and tobacco.
  • Our Top tips :
    • You can give away a bottle of Whisky for £58.75 and reclaim the Vat however you will not receive any income or corporation tax relief.
    • You can give away an item with conspicuous advertising totalling £50 + Vat and reclaim the Vat and receive income or corporation tax relief.
    • You don’t have to go to the expense of getting calendars specially produced or glasses engraved, just get some stickers printed with the company details and apply them liberally. You applied them to the gifts not just the wrapping didn’t you.

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