With Christmas coming up…you may want to think about the rules……

If you want Christmas gifts to be tax deductible as an expense, the value should be no more than £50 (per recipient) and be promotional in nature (i.e. the gift itself should bear your branding, not just the packaging or wrapping).

Unless you sell them, such gifts should not be alcohol, food, drink or vouchers that can be exchanged for these. If gifts aren’t seen as promotional or they’re worth more than £50, they will be classed as entertaining, so they will not be tax deductible. And if the gift is worth more than £50, HMRC will disallow the full cost, not just the amount over £50. If in doubt, as with all tax matters, seek advice from your accountant.

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