If you are purchasing gifts for clients, then you may be able to claim these as a Business Expense.
Gifts consisting of Food & Beverages
- If the gift consists of food and beverages, for example chocolate and wine, then you are only able to claim 50% of the total cost as a Business Expense.
- Raise the full cost of the purchase under the "Entertainment" category and the system will automatically calculate the claimable amount for you.
- Include in the Expense Description field "Client Gift - 50% claimable")
Non-Food & Beverage Gifts
- If the gift is something other than food and drink, for example a book and candle, then it is 100% claimable.
- You can raise this under the "General Expenses" category
- Include in the Expense Description field "Client Gift - 100% claimable")
If you are giving a hamper or gift basket that contains both food or drink, but some other items as well, then you will need to split out the cost of the 100% claimable items from the 50% claimable items (food and beverages). You can then claim by either;
- raising these as portions as separate expenses under the categories mentioned above; or
- work out the claimable amount yourself and raise one expense under the "General Expenses" category for that amount. Make sure to include in the Expense Description field that "Gift contains both 50% and 100% claimable items so have manually calculated the claimable amount"
For reference, the below list is an indication of how much is claimable based on the type of gift;
- Beer or wine
- Gourmet food
- Jams, chutneys etc
- Meal vouchers
- Work planner/calendar
- Book or gift voucher
- Tickets to an event (other than corporate box entertaining)