Chapter 4 - 2.6 - Entertaining and Gifts Flashcards
1
Q
Expenditure relating to client entertaining
A
Disallowable
2
Q
Expenditure relating to staff entertaining
A
Allowable
3
Q
What kind of gift to customers is allowable?
A
The gift of trade samples
4
Q
Other gifts to customers are disallowable, unless the item…
A
- cost is less than 50 quid per recipient per year
- is not food, drink, tobacco or vouchers for exchangeable goods
- carries a conspicuous advertisement for the business
5
Q
How are gifts to employees treated?
A
Allowable - there is no upper limit (unlike for benefits in kind)
6
Q
How may a gift to an employee hinder that employee?
A
The gift may result in an income tax charge for the employee under the benefit rules
7
Q
A
