gifts to customers

gifts to customers

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Forgive me if this is a repeat but not sure of the answer. 

Client wants to thank some customers with a small tin of chocolates - won't be expensive, certainly well below the £50 limit, do HMRC consider it to be food and therefore technically disallowed?

thanks in advance

Replies (11)

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By Steve Kesby
28th Nov 2011 12:18

Are these chocolates...

... that are intended to be applied topically?

You should probably look on them less as chocolates and more as little bundles of fats, sugars and other carbohydrates.

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By thisistibi
28th Nov 2011 12:21

Food

I would say with some confidence that chocolate is food.

McDonalds, on the other hand... that's a different matter.

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By lja20
28th Nov 2011 16:11

thanks

I think I already knew the answer, chocolate liquors would really be the nail in the coffin.....

@steve - intrigued by your reference to be applied topically - not sure that my client is intending to give his customers chocolates with a paintbrush (wrong image!!) but I guess it could be a workaround!

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By jamesbailey
28th Nov 2011 13:35

Chocolate is not food

For VAT purposes, chocolates are "confectionery", not food, and are thus standard rated, so I think what is sauce for the Customs goose should be sauce for the Revenue gander.

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By Steve Kesby
28th Nov 2011 18:08

James

I think John Venn (of diagram fame) would disagree with you.  He might say something like, "confectionery is a subset of food".  If you're ever going to argue the point at tribunal though, I'd like to come and watch.

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By frustratedwithhmrc
28th Nov 2011 15:21

PWC - Christmas gifts could be illegal under Bribery Act

Just a general point as the limit mentioned in lja20's original post was "below the £50 limit".

"Corporate Christmas gifts of a gold fountain pen or a case of Champagne may be caught by the new Bribery Act, according to a Serious Fraud Office "Secret Father Christmas" test drawn up by the country's largest professional service firm."

http://www.telegraph.co.uk/finance/yourbusiness/8217356/Christmas-gifts-could-be-illegal-under-Bribery-Act-says-PwC.html

Ho Ho Ho!

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By JazzySasha
29th Nov 2011 08:37

Apply chocolate topically...VAT saving

If you wish to give chocolate as a  gift, but don't want to pay any VAT - then the good news is that chocolate body paint is zero-rated!

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Replying to johngroganjga:
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By susanna russell-smith
30th Nov 2011 12:51

mmm...

Can I come to the Party please?

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By Graham Shove
30th Nov 2011 22:44

Bribery Act

An accounting practice is offering up to £100 for each referral that results in new business.  Does this fall fowl of the Bribery Act?

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By 525252
01st Dec 2011 10:08

i have been offered 8 legs of venison from a client for £50 - is that too dear ?

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Replying to Locutus:
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By Graham Shove
01st Dec 2011 17:02

That is such an old joke.  Sorry, I can't stay; I have to be at the dentist for tooth hurty.

What is this session coming to?

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