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
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Replies (6)
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by giving these gifts will your client be 'entertaining' the thought that the subbies will think more of him?
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
And neither you nor your client should be giving tax advice to "subbies" or anyone else who isn't a client.
At no point does my post mention giving advice to the subbies or anyone who isn't a client.
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.
