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Tax Insider Tip: Deduction For Business Gifts

10th Nov 2014
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Although business gifts are not deductible as a general rule, there are exceptions for small gifts that carry a conspicuous advertisement for the trader, such as a branded diary, mouse mat or pen. However, for a deduction to be forthcoming the gift must not be food, drink or tobacco and the cost of all gifts to the recipient in the tax year is capped at £50.

A deduction can also be claimed for the cost of free samples given to the public.

Example:
Roger is a self-employed gardener. He wants to give his customers a gift at Christmas. By giving them a diary featuring the logo of his business, he is able to claim a deduction for the cost of the gifts.

Had the diaries not been branded, the deduction would not have been allowed.

 

This is a sample tip taken from our 136 page guide:
101 Ultimate Tax Strategies Revealed.

Click here to receive a free copy of this tax saving guide today!

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