I have a client who wants to do something for his biggest client - they are worth a huge amount of money to him so he wants to show his appreciation by maybe paying for their Christmas party, or something similar, he ideally wants to spend around £1,000 on them - is this something that can be claimed against Corporation Tax, and can the VAT be claimed on this too - or is it all simply classed as 'entertainment' and not deductible for tax?
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Gifting clients
I cannot see how it is anything other than entertaining - it appears to be exactly that??
Could he not structure it as some kind of discount and leave it to them to decide how to apply the amount he has chosen to discount?
Alternative "Gift"
Why not offer to make a donation to a charity of the client's choosing? This should be fully deductible. I have a couple of charities very dear to my heart, and I would be extremely happy if a "supplier" were to make a donation on my behalf.