Are Gifts to Business Customers Tax Allowable?

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Gifts to business customers are tax allowable however they must meet certain conditions as set out by HMRC:

  • The gift must be no more than £50 per client per year;
  • The gift must not be alcohol, food, tobacco or vouchers that can be exchanged for those things.
  • The gift must contain your business logo or branding otherwise it will fall into entertainment, which is not tax allowable.
  • The £50 is an exemption not an allowance so if you exceed the amount of £50 the whole amount becomes taxable.

It is worth noting that as long as you follow these rules you will also be able to claim back VAT on your business gifts to your clients.

Anita is a Chartered Accountant, turned blogger and creator of the ever popular free Go Self Employed Email Mini Course, which has been completed by hundreds of attendees all over the UK. Using her 10 years experience in accounting, tax and operations for Small Businesses, Anita is on a mission to make finance simple for the self employed, so they can stop stressing about tax & finances and focus on building profitable businesses which will give them the lifestyle they dream of.