Christmas gifts

cooky1968

This is pretty basic stuff, but I just wanted to confirm;

Last year we as a company brought a load of spirits for staff and customers, I deducted the tax for the staff bottles but not the customers. Our accountants, when doing the audit, questioned this and advised us to pay back the deducted tax. I am faced with the same dilemma now, but I am positive that deducting tax for staff gifts is correct.
Please can somebody confirm this.

Thank you

AK002

Not tax deductable if it's alcohol.

deanshepherd

It IS deductible, alcohol or not, provided it is a trivial seasonal benefit (Link).

Monsoon

Deducted which tax? VAT, CT or IT?

As Dean says, trivial gifts to staff are not BIKs and are allowable for tax. A bottle of wine or vodka is trivial. A case of booze is not.

Customer entertaining including alcohol is not allowable for VAT or CT.