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Gift and Samples allowance

Dear Sir,

we want to provide sample of our goods to the customer for free of charge for marketing purpose. how much will be the limit. could you please send me the appropriate  related link for  gift and sample allowance.

Many Thanks

Kind Regards

Mr Rahman

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There are two things you need to think about:-

 

1. Income Tax / Corporation Tax

Gifts that clearly contain an advert are allowable, as long as :-

That the gift is not food, drink or tobacco, nor is it a token or voucher exchangeable for goods.That the cost of the gift (together with the cost of any other such gifts to the same recipient in the relevant tax period) does not exceed £50.

http://www.hmrc.gov.uk/manuals/bimmanual/bim45070.htm

 

2. VAT

 

Again the limit is £50. If you go above this, you will need to pay output tax to HMRC on the value fo the gift.

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.por...

 

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