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Christmas gifts

cooky1968cooky1968 Just JoinedRegistered Posts: 1
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


  • AK002AK002 Font Of All Knowledge Registered Posts: 2,492
    Not tax deductable if it's alcohol.
  • deanshepherddeanshepherd Font Of All Knowledge Registered Posts: 1,809
    It IS deductible, alcohol or not, provided it is a trivial seasonal benefit (Link).
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    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.
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