For this reason, the following guide will explain in detail how you can deduct Christmas gifts from customers – and thus on both sides equally at Christmas time for joy. The tax-free gift It seems trivial, but first, the gift is closer as such Are defined. Under a gift one understands on legal and economical basis a donation in kind or a money, April 2019 Calendar UK which for the gifted customer is attached to no legal obligation. Of course, no consideration may be required for the said contribution! Of course, there are no limits to this definition.
April 2019 Calendar UK
Gifts can be considered as monetary benefits for employees. Then in-kind benefits are also subject to income tax treatment. For example, a gift to your customers could be a piece of chocolate, a small bracelet, or something similar. When choosing your gift, first make sure it fits your style and that it is something that will delight many people. A gift such as the aforementioned candy is guaranteed to be well received by a high proportion of your clientele! Especially at wintertime, there are many sweet dishes, which are thematically related to the Christmas.
Keep in mind that unique gifts are more memorable. The exemption from the choice of the right gift, however, there is another factor that you under no circumstances should overlook – the exemption limit. The exemption limit describes the amount up to which no tax is levied on the affected product and you can therefore deduct the costs of this 100% as an operating expense. Of course, this amount must therefore not be exceeded,
otherwise you have to pay additional tax on the entire amount for each of your Christmas gifts for your customers! However, there is not a specific exemption limit, as it varies with each different kind of gift. With gifts for your For a present for your customers, the limit is 9 euros less and is therefore 35 euros. Therefore, make sure that what you want to give away your customers is never more expensive than 35 euros ,
This sounds like a harsh limitation on the choice of your present. However, do not be fooled! The customer does not expect a gift at all, therefore the joy will be great even with a little attention, as this will certainly surprise him. Therefore, it is not necessary to spend horrendous sums on the gift.It is important for tax-free gifts! HopCaution, however, is necessary if you have already made a gift to a customer at the beginning of the year.
The exemption limit applies to each person individually over a period of one year. Say: You must never exceed the exemption limit of 35 euros per customer within a year. Otherwise, the costs will no longer be considered as operation You have to pay attention to a basal factor, which, however, is often ignored – the obligation to record. It is April 2019 Calendar UK crucial that you record the expense of the gift separately. This is necessary for each gift individually.