Christmas is nearly here and you’re planning to show your appreciation to your clients with a little gift. Do you know the rules around tax deductibility for gifts to customers?

If the gift includes food or alcohol, it is only 50% deductible. This includes food hampers, box of fancy chocolates, the bottle of bubbly and the Christmas pies. So when it’s not good for your figure, it’s not good for your wallet either!

Other gifts are generally 100% deductible. As long as you are not enjoying it with them, in which case it might fall under the entertainment rules and be only 50% deductible (e.g if the gift is inviting your client out for dinner).

When in doubt, asking your accountant is always a good move. Or contact us at Strategico if you need an accountant with a difference.

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