Tax relief on Christmas Gifts
Christmas shopping! Whether you love it, or loathe it, when it comes to business there is more to this annual spending spree than meets the eye!

Customer and staff Christmas gifts are seen as entertaining and so the costs incurred are not generally tax deductible. There are, however, exceptions to the rule.

 The following types of gift could be tax deductible…
  • A gift that also advertises the business, such as a branded umbrella or mouse mat
  • A gift of the company’s own product that is given away during the usual course of the business, such as a florist making Christmas bouquets for promotion to the public
  • Gifts to charity
  • Christmas gifts to employees as long as they are not excessive over the course of a tax year, so as not to be treated as a benefit in kind, which the employee may have to pay tax on

 The following are not tax deductible...
  • Anything consisting of food, drink, tobacco, or any voucher that can be exchanged for goods
  • Any gift over £50

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