Taxation

The UK is affected by the HMC rules on VAT for VAT registered business that give business gifts in the course or furtherance of the business activities.

From October 2003 the rules were updated and simplified and state that no output tax is due on the giving of gifts provided that the total cost of the gifts given to any one individual does not exceed £50 in one year.

In addition gifts, which contain a conspicuous advertisement for the trader are under certain conditions not disallowed by the HMC as a deduction against taxable profits. Again, the cost must not exceed £50 in a tax year, including the value of any other gifts made by the organisation to the same recipient.

Common examples of allowable gifts are diaries, pens mouse mats etc and the vast majority of the items sold by Hambleside are tax deductible.

Please note: This Company is not a tax expert and if there is any doubt you should contact your own tax advisor.

For further information on taxation matter click here.