Giving gifts to clients?

[sloth]

As a sole trader, does the following apply to me if I want to send a gift to a particularly good client?

 

"HMRC allows you to give a gift worth up to £50 to a client in each tax year.

The small print

It must be business related;

it cannot be alcoholic, food, tobacco or vouchers that can be exchanged for those things.

The gift must also carry a clear advertisement for your business; otherwise it would be classed as entertainment expenses.

The £50 budget includes the gift-wrapping so go easy on the wrapping paper.

If you do go over the limit the gift will be disallowed and liable for tax."

 

Cheers all...

 

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[sloth]

Also, would for instance a tag on a bunch of flowers with the company name etc satisfy the 'clear advertisement for your business' part?

 

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[Mike Dempsey]

I have a lot of cutomers who buy wooden barrelled pens from me to use as corporate gifts (ie rollerballs, fountain pens etc supplied in wooden boxes). In order to make them tax deductible I laser engrave their company logo on them. In the ten years I have being doing it I have never had a customer complain about having their logo engraved on the box or website engraved on the pen. After all it is an advert for the company giving the gift.

[Kev Stephenson]

It's more a case of don't bung the head of contracts at the housing association £100 taped to a bottle of 40 year old single malt to bring your tender to the top of the pile or leave the other applicants paperwork on his desk while he goes for a coffee. If you want to give the old dear around the corner a big bunch of flowers and a bottle of expensive wine because she has passed your name around the local WI meeting and it got you a nice contract then all will be OK. It is also more on the person receiving the gift to declare it to the tax man if it could be seen as more a perk of the job than a true gift.

[sloth]

I'm not talking anything underhand here, strictly above board. I don't believe those in receipt of these hmrc declared gifts would need to further declare them. I think they are seen as just that, a trivial gift.

I'm thinking more if a company/organisation has passed me plenty of work over the year, I want to give a token of my appreciation - but I want to do it right and it will be going on my tax return. Does that make sense?

 

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[AA Teccie (Paul)]

I'm not talking anything underhand here, strictly above board. I don't believe those in receipt of these hmrc declared gifts would need to further declare them. I think they are seen as just that, a trivial gift.

I'm thinking more if a company/organisation has passed me plenty of work over the year, I want to give a token of my appreciation - but I want to do it right and it will be going on my tax return. Does that make sense?

 

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Why not keep it low key and personal, i.e. a hand-written (very nice) Christmas card...and maybe a nice box of 'locally sourced' mince pies hand delivered by your goodself.

 

Just a thought..

Paul

[Kev Stephenson]

I'm not talking anything underhand here, strictly above board. I don't believe those in receipt of these hmrc declared gifts would need to further declare them. I think they are seen as just that, a trivial gift.

I'm thinking more if a company/organisation has passed me plenty of work over the year, I want to give a token of my appreciation - but I want to do it right and it will be going on my tax return. Does that make sense?

 

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It's all in the interpretation, if you supply the person responsible with issuing the contracts a sizable 'gift' will this sway who he issues the contracts to? Could it lead him to give you a call to say price at £x and the jobs yours? Could it be seen as 'this is your share of this years, keep it coming for more of the same next year? Is it bribery?

 

My wife works for a big company and they have to declare everything to the MD including who paid for a meal if they go out for a dinner meeting.

[Johny Walker]

shouldnt it be the other way around