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The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> Birthday Gifts and VAT Reclaim
Post Info TOPIC: Birthday Gifts and VAT Reclaim
buckland10


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Birthday Gifts and VAT Reclaim
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Hi, one of the directors of the company I work for bought a birthday gift for another director for £45.  What expense account should this be posted to and what are the VAT implications?

Thanks!

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RobH


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I'm dubious that this is claimable either for vat or CT...I'd be tempted to put it under the loan account but would be interested to hear other opinions.

Rob

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semsley


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I would not consider this a business expense.

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Susie Sue


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Me neither - Directors Loan account!

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Wella


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The other option is that it becomes a taxable benefit to the recipient and is a disallowed business expense for CT biggrin

A couple of useful links

http://www.hmrc.gov.uk/manuals/eimanual/EIM21863.htm

and

http://www.hmrc.gov.uk/paye/exb/a-z/g/gifts.htm#2

Bill



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AngelaWBS


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Hi,

I agree with Semsley and Susie Sue.

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Truemanbrown


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Have a quick look at this blog:-

http://truemanbrown.blogspot.com/2010/11/tax-free-gifts-to-staff.html

-- Edited by Truemanbrown on Sunday 21st of November 2010 05:33:17 PM

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luther parker


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Hi there,

I would stick it in the Directors loan account or Directors current account, which ever you call it...T9 code.

Luther.

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BackOfficeGroup


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Here's a different view...

Would def not claim VAT but you could put it down as staff welfare, so long as all members of staff are treated the same. However it may be disallowed for CT calc purposes.

P

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buckland10


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Thank you all very much.  Just as I suspected!

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