Gifts to New Home Owners
T.C.
Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙♂️
If a builder sends flowers to the purchaser of a new home, can he claim the cost of the flowers as an expense? :001_unsure:
0
Comments
-
The word 'gifts' should be answering your own question. Or alternatively, 'client entertaining'. I would show the cost in the accounts but add back on the comps.
Regards
Dean0 -
You don't think it could be classed as advertising then?0
-
Would the company logo(s), slogan(s) be on the flowers?
I can see where you are trying to go with it but essentially it's just a goodwill gesture.
Regards
Dean0 -
Yes the company logo will be on the flowers - goodwill - yes, but advertising too!! This won't happen very often, so I think it must be worth trying for.0
-
So the logo is actually on the flowers themselves? Are they artificial or something? :001_unsure:
If you can satisfy the 'advertising' conditions, and the cost is below £50, then that should be ok - see here:
http://www.hmrc.gov.uk/manuals/bimmanual/BIM45070.htm
However, note the final line...The advertisement should be on the gift itself, and not just on the wrapping.
That is where I think the expenditure fails to be allowable.
Regards
Dean0 -
Hi
I agree with Dean, it is too remote.
I get the same problem but more often with gifts of flowers to staff (weddings, birthdays and leaving), a benefit or not?
Poodle0 -
I get the same problem but more often with gifts of flowers to staff (weddings, birthdays and leaving), a benefit or not?
As per Section 201 ITEPA 2003
Section 201(1) ITEPA 2003 concerns “employment-related benefits”.
A benefit is defined in Section 201(2) as “ a benefit or facility of any kind”. When a benefit is provided to an employee (or to any member of his family or household (Section 721(5) ITEPA 2003) by reason of the employment ( EIM20501), it is an “employment-related benefit” (Section 201(2)).
What this is saying is that a benefit-in-kind will arise if it is in connection with the employees employment. In other words the employee must have given something by way of services for the employer to give them a benefit.
So in answer to your question I would say, no there aren't chargeable benefits but they also wouldn't be a specific deduction for the employer.
You've got to love tax legislation! :001_tt1:
Regards
Dean0 -
Hi Dean
This from HMR&C 480 Expenses & Benefits a tax guide
Trivial benefits
Strictly all benefits are subject to tax and NICs, unless there is a specific exemption. However,
sensible practical administration of the tax system determines that benefits of a trivial nature
(for example, a seasonal gift of a turkey or an ordinary bottle or two of wine) should not be charged
as a benefit. Anything more lavish in quality or quantity remains chargeable.
There is no monetary limit to determine what is a trivial benefit. A cash benefit, or a benefit with
a money’s worth, is never treated as a trivial benefit.
Depending on the value I have in the past treated as a 'staff benefit' but not a 'taxable benefit in kind' and allowed as tax deductable for the employer.
Love tax? that's why I am concidering ATT:eek::eek:
P0 -
Mmm. Dean. It satisfies all the criteria except for the bit about being on the item not the wrapping. Maybe I will leave this one out then. Thanks for all the advice.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 325 NEW! Qualifications 2022
- 160 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 95 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 274 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 202 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership