The festive season means that your clients may be hosting parties for staff, and possibly clients. Gifts are often given to loyal customers and generous suppliers, but what is the VAT position, and are there any steps that can be taken to avoid a charge?

OVERVIEW

If the entertaining includes non-staff, you will need to pro rata the VAT reclaimed to only include the staff. This can be avoided if you charge a token amount for attending. Gifts of up to £50 (excluding VAT) can be made to individuals in each year, but ensure records of such gifts are kept.

FULL ARTICLE HERE WITH EXAMPLES