Client Entertainment or Advertising?

Client Entertainment or Advertising?

Didn't find your answer?

Have a Company who bought bottles of whisky to give to customers with the Co name and logo engraved on to them - primarily thought this would be client entertainment, however with the Co logo & name could this be considered as advertising and therefore be  tax deductable and VAT reclaimed?

Replies (3)

Please login or register to join the discussion.

By James Hellyer
29th Sep 2011 11:54

Advertising

Gifts, other than free samples are generally disallowable. A generel exception is allowed for products that prominently display advertising for the donor. The exception does not extend to gifts of alcohol, food, tobbacco or gift vouchers.

It's client entertaining and disallowable.

See point 20.10 >>

http://www.hmrc.gov.uk/guidance/480.pdf 

 

Thanks (1)
By George Attazder
29th Sep 2011 11:51

Business gifts...

... costing up to £50 and incorporating a conspicuous advertisement are generally allowable.

However, one of the exceptions is a gift of food, drink, or tobacco.  That's in S.45 ITTOA 2005 and S.1300 CTA 2009.

So is it will only be allowable if it is whisky intended to be applied topically.

The VAT will, however, be recoverable as theres no corresponding exclusion in paras 5(2) et seq of schedule 4 to VATA.

Thanks (2)
Mark Lee headshot 2023
By Mark Lee
30th Sep 2011 06:47

"Sorry Mr Client"

"The taxman is ahead of you and the law specifically says you cannot claim tax relief for the cost of those gifts."

Mark

 

Thanks (1)