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Flowers sent to client - not a disallowable business gift?

Flowers sent to client - not a disallowable...

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Good afternoon

Apologies if this is a silly question - Home search company always sends flowers to their clients when they are moving into their new home. Reading the legislation, am I right in thinking this is this part of the sale, therefore allowable for CT and VAT purposes?

If so, what expense does it come under? COS?

Thank you

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By WhichTyler
02nd Oct 2014 17:53

If its in the contract...

... that they will provide a bunch of flowers, then it is allowable.

 

I suspect it is at their discretion though, so it looks like a business gift (VAT recoverable up to £50 gift to any one customer in a year, but not allowable as deduction from profits.)

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By nutwood
02nd Oct 2014 18:53

Specific reference to a bunch of flowers....

From BIM45065

In some instances, something that appears to be a gift may actually be a part of a sale to a customer. A bunch of flowers presented to a customer who has just purchased a new car would effectively have been paid for by the customer - it is a part of the cost of the car.

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By WhichTyler
02nd Oct 2014 18:59

Well done
I missed that bit...

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By Chipette
02nd Oct 2014 19:05

Thank you WhichTyler for your answer.

No reference is made to it in the contract, and the value is under £50 however I was referring specifically to:

http://www.hmrc.gov.uk/manuals/bimmanual/BIM45065.htm

and thought it would be very similar to the example of a bunch of flowers offered with a car?

 

 

 

Edit: I am a bit slow tonight! Thank you for your input!

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By Chipette
02nd Oct 2014 19:06

And therefore,

is it Cost of sales?

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