This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Gift taxation

Jamespaul1986
Posts:1
Joined:Tue Dec 12, 2017 12:56 pm
Gift taxation

Postby Jamespaul1986 » Tue Dec 12, 2017 1:00 pm

Hi All,

I run a recruitment agency and am looking to provide key clients with gifts. Is there any restriction on spend?

One client is a keen golfer and I wanted to buy him an expensive golf club (£400). Would he be liable for tax? Would I be able to claim the vat back on the club?

Is there a limit of the amount of times I can provide free gifts?

Is there a limit on the number of free gifts I can give out?

Thanks.

James

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Gift taxation

Postby pawncob » Thu Dec 14, 2017 12:37 pm

"Gifts" to clients are not tax deductible, so there's no restriction on the amount you can spend.
With a pinch of salt take what I say, but don't exceed your RDA

someone
Posts:691
Joined:Mon Feb 13, 2017 10:09 am

Re: Gift taxation

Postby someone » Thu Dec 14, 2017 1:35 pm

It would be worth checking if your client is allowed to accept the gift. Everywhere I've worked has had strict rules on accepting gifts from clients and suppliers.

£400 golf clubs would definitely not have been allowed anywhere. What actually happens to the clubs would have varied - a refusal to accept or return to giving them to someone else (not your recipient) although I've only seen this with things like expensive champagne to having a charity raffle.

A few people no doubt flaunt these rules but I suspect the vast majority don't - it's just not worth risking your job for a few hundred pounds. I'm pretty sure companies would be very concerned if employees making hiring decisions were taking gifts from recruitment consultants.

It actually beats me why expensive gifts are sent in this day and age. Most places have a threshold where gifts are allowed £50 or $100 is typical sort of value (cash or vouchers banned in any amount) which is enough that with a bit of effort, particularly if the donor has got to know the donee, something that will be appreciated can be given but low enough that it's unlikely to interfere with decision making.


Return to “Company Taxation”