Hello,
Wondering if anyone could help me out, or make this a little clearer. At the moment I'm in the pre-start of the business and when the business is Launched for April, I would like to ideally give members free vouchers and gift cards for incentives back for being a member onsite.
Where I'm getting confused is that my members would be either classed as freelance or subcontractors, I just want to try to understand the tax around this because I don't want to submit info to HMRC for a gift they've received if that makes sense?
E.g Would like to buy £100s worth of Boot vouchers in £5 and send these out to them but at same time I thought you could class this as a gift expense but I understand that you still need to pay tax on this?
Replies (2)
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Gifts to non-employee contacts are usually treated as entertainment expenses, and so are not generally tax-deductible.
I think you need to provide a lot more information about your business model, the nature of its products/services and what exactly you mean by 'members' and their role in the business.