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.
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