Are Gifts to Business Customers Tax Allowable?

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.
  • A 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.


About Anita Forrest

Anita Forrest is a Chartered Accountant, spreadsheet geek and money nerd helping financial DIY-ers organise their money so they can hit their goals quicker.