I hope this message finds you well. I recently sent a bouquet of flowers to a colleague, as a condolence gesture following the passing of his grandfather. I'm currently using Xero for my accounting, and I'm unsure about how to appropriately record this expense.
Expense Category: What would be the most suitable expense category in Xero for recording a condolence gift? I was considering "Miscellaneous" or "Other," but I'd appreciate your insights.
VAT Treatment: In terms of Value Added Tax (VAT), should I attempt to claim VAT on this expense? The Interflora bill for the flowers is £55.83 + VAT, totaling £67. I understand that certain personal or non-business-related expenses may not be eligible for VAT recovery, but I'm uncertain about the specific rules in this context.
Tax Year: This is the first gift for the employee during the current tax year.
Your guidance on the above matters would be greatly appreciated. Thank you in advance for your expertise.