Perhaps I'm overthinking this...
The definition of 'employee entertainment' per VAT notice 700/65 includes 'provision of food and drink' - on which any VAT suffered may be reclaimed as input tax.
However, the business gift rules per VAT notice 700/7 state that an output tax charge arises on business gifts over £50.
So if an employer gives an employee a £65 bottle of whisky, should it be treated as employee entertainment, or as a business gift and output VAT charged?
Replies (3)
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https://www.spicerandco.co.uk/the-tax-rules-of-christmas-gifts-and-celeb...
I’d say it’s a gift - unless they are required to drink it during work hours at work.
Is "neither" a permitted answer? (By which I mean, is there a - direct or indirect - tax advantage to calling it either of those things?)