Allocating Promotional Items

How do I account for items given away for free

Didn't find your answer?

Starting a new company and have had to provide items as testers and for  promotion to clients without charge, how do I account for this? Are they tax deductible and as I  had to pay VAT on them can I reclaim this also?

thanks!

Replies (10)

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RLI
By lionofludesch
15th Feb 2024 19:19

Depends what they are and how much they cost you.

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Replying to lionofludesch:
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By FactChecker
15th Feb 2024 20:01

"Protein Bars" (unless the unlaunched business of a few weeks back has completely reinvented itself) ... which indeed flags the 'questions' you raise.

OP if you're still committed to the adrenalin-rush of launching without professional advice, then you might gain one small insight into potential pitfalls from https://www.accountingweb.co.uk/tax/hmrc-policy/dual-pack-cake-product-c...

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By Leywood
15th Feb 2024 19:40

With all your questions, surely you are taking formal advice from an Accountant?

It would be a bit bonkers to rely on a forum that only have a smidgen of the facts and when you have no idea if someone is qualified to answer or not.

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Replying to Leywood:
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By NBnewby
16th Feb 2024 16:53

Supplements and the bars, I work in other areas of finance so broadly speaking know my way around - just other questions I would appreciate help with and understand how it works where I am not experienced, thanks!

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Replying to NBnewby:
RLI
By lionofludesch
16th Feb 2024 17:13

NBnewby wrote:

Supplements and the bars, I work in other areas of finance so broadly speaking know my way around - just other questions I would appreciate help with and understand how it works where I am not experienced, thanks!

It almost sounds as though you think an accountant's advice is worthless.

Yet here you are - fumbling your way around.

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Replying to lionofludesch:
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By FactChecker
16th Feb 2024 17:50

No fumbling necessary.
After all OP is multi-talented - working in "other areas (plural) of finance", so expert in multiple disciplines ... and Tax or VAT can be duly relegated to their niches as minor specialisms! I'm sure it'll all come out in the wash ...

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Replying to FactChecker:
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By NBnewby
16th Feb 2024 22:39

Know it all (or not) answers are really not necessary, if you can’t provide an answer to a question - which is what this area “Ask Any Question” is then keep your judgemental egotistical opinions to yourself. What a prat, no response required Thankyou.

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By FactChecker
16th Feb 2024 22:50

It may be a surprise to you, but if you post on a public forum then *you* don't get to determine who responds (or indeed what others choose to say).

In the same way that you can post (wholly unwarranted) insults with which you're prepared to waste your time ... everybody else can make their own minds up about who has an ego problem.

FWIW, and to demonstrate civility, lion's comment about you "fumbling your way around" relates to the fact there is NO answer to your post - since it neither poses a yes/no type of question, nor (more importantly) provides the level of all associated details that would be necessary to even begin answering the questions you patently should be asking.
I (and many others) 'could' write a lengthy piece here explaining all the specific reasons to you as to why your requested answers would always be the same - 'It depends' followed by a lengthy list of questions for you, that would invariably be followed by further questions for you to think about.
But not only is that how professional advice works (and why it isn't free), it would not make you very happy given your immoderate response.

It's the fact that you don't appear even to acknowledge or understand how adrift you are (based on this and previous posts) which probably leads you to lash out - but you really DO need to seek professional advice (properly planned and paid for).

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RLI
By lionofludesch
16th Feb 2024 23:04

Another satisfied customer.

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By FactChecker
16th Feb 2024 23:09

I do wonder exactly where Aweb are trawling nowadays ... the hit rate for 'discarded catch' returned to the waters this week has been unusually high, even by previous (lack of) standards!

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