Business gift to partner

[northernladuk]

Hi there,

If I would make quite expensive gift to my business partner, am I allowed to expense it through my Ltd company ?

Thx.

Just to play devils advocate here.....

Does this constitute buying your partner their xmas present and putting it through the books or a geniune gift to a non-relation?

Does this make a difference for tax or for risk of doing this? I would have thought even there may be defined rules around what is and what isn't allowable putting your partners xmas gift through the company is a little questionable? Surely if you could do this it would be a green light to abuse the system?

[gemasp]

Does it mean that if I pay for a gift from company account I will have to pay CT on that?

[Craig@Clarity]

Sorry I didn't explain that clearly. Let's say I have a friend who helped me to get a new contract and I would like to buy him a present - something around 1.5K (10% of a contract).

Can I expense that?

You can but it won't be an allowable expense for corporation tax relief.

[gemasp]

Sorry I didn't explain that clearly. Let's say I have a friend who helped me to get a new contract and I would like to buy him a present - something around 1.5K (10% of a contract).

Can I expense that?

[Craig@Clarity]

Good point!

[Platypus]

Absolutely agree but the OP didn't say it was for Xmas. They also say expensive gift which IMHO is not "trivial".

I was responding to your statement that chocs and wine is not allowable against CT. My point is, yes they are, if they are seasonal gifts.

I entirely agree that this does not answer the OP's question, but then again, neither did your your reply about choc!

[Craig@Clarity]

Chocs and Wine are allowed if they are 'seasonal gifts'

Absolutely agree but the OP didn't say it was for Xmas. They also say expensive gift which IMHO is not "trivial".

[Platypus]

What are you thinking of buying? Chocs, wine or tobacco isn't an allowable expense for CT.

Chocs and Wine are allowed if they are 'seasonal gifts'

[Platypus]

Hi there,

If I would make quite expensive gift to my business partner, am I allowed to expense it through my Ltd company ?

Thx.

It's not clear whether your business partner is an employee of your limited company. If so, these rules apply:
EIM21863 - Particular benefits: trivial benefits - examples

[DeludedAussie]

If it's your business partner and you buy it through the company, won't they effectively be buying it for themselves anyway??

What are you thinking of buying? Chocs, wine or tobacco isn't an allowable expense for CT.

100k rolex watch with diamonds

Just interested what tax benefits could you get away with if buying jewellery

[Craig@Clarity]

If it's your business partner and you buy it through the company, won't they effectively be buying it for themselves anyway??

What are you thinking of buying? Chocs, wine or tobacco isn't an allowable expense for CT.

[gemasp]

Hi there,

If I would make quite expensive gift to my business partner, am I allowed to expense it through my Ltd company ?

Thx.