Share this content
0
1046

Treatment for Xmas gifts to subcontractors?

What is the tax treatment when gifting to subcontractors?

I have a builder client wishing to give Xmas gifts to their subcontractrors.

What are the tax treatments of such gifts for both my client and the subbies?  I am aware of the rules for gifts to employees and customers, but subcontractors do not fall into either catergory.  My client hasnt yet decided what form the gifts will take if that makes a difference.

The HMRC "helpline" has re-directed me to several different departments, none of which could give me any clarity or point me towards any tax documentation covering the subject.

Any one had the same thing or able to point me towards a definite answer?

Many thanks

Replies

Please login or register to join the discussion.

avatar
26th Nov 2018 12:23

by giving these gifts will your client be 'entertaining' the thought that the subbies will think more of him?

Thanks (2)
avatar
By Jdopus
26th Nov 2018 13:20

They're suppliers so it gets treated under the business gift rules and is not allowable, the same rules as customer entertainment.

https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim45065

The only exception is if it meets the rules on conspicuous advertisement - but trying to meet those rules leaves your choice of gifts very limited.

https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim45070

Thanks (2)
avatar
By AJF499
to Jdopus
26th Nov 2018 14:20

That's great, many thanks.

Thanks (0)
avatar
26th Nov 2018 13:33

And neither you nor your client should be giving tax advice to "subbies" or anyone else who isn't a client.

Thanks (0)
avatar
By AJF499
to Accountant A
26th Nov 2018 14:21

At no point does my post mention giving advice to the subbies or anyone who isn't a client.

Thanks (2)
avatar
to AJF499
26th Nov 2018 23:23

AJF499 wrote:

At no point does my post mention giving advice to the subbies or anyone who isn't a client.

You said "What are the tax treatments of such gifts for ... the subbies? " which suggested it.

Thanks (0)
Share this content