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Post Info TOPIC: Input tax on gift vouchers
Silly Digits


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Input tax on gift vouchers
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Hi all

Can anyone let me know if my client can reclaim input VAT on gift vouchers for staff.  £50 vouchers.  Am I right in thinking that a gift/s can be made to employees up to £50 per year before becoming taxable?

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Wella


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If they are face value, redeemable vouchers, then they are taxed as normal, as if they were a payment in cash . The only exceptions in terms of any sort of gift to an employee, is something like an annual party which is open to all employees and does not exceed £150 per head, or a trivial benefit such as flowers/ chocolates to mark a special occasion (birth of a child etc).

There will be no VAT on the vouchers. They are treated as cash and VAt is dealt with at the point of redemption by the retailer redeeming the vouchers on the "purchase".

HTH
Bill

-- Edited by Wella on Monday 25th of October 2010 05:25:42 PM

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Rhianrach


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Wella wrote:

If they are face value, redeemable vouchers, then they are taxed as normal, as if they were a payment in cash . The only exceptions in terms of any sort of gift to an employee, is something like an annual party which is open to all employees and does not exceed £150 per head, or a trivial benefit such as flowers/ chocolates to mark a special occasion (birth of a child etc).

There will be no VAT on the vouchers. They are treated as cash and VAt is dealt with at the point of redemption by the retailer redeeming the vouchers on the "purchase".

HTH
Bill

-- Edited by Wella on Monday 25th of October 2010 05:25:42 PM


If you really wanted to push it then you can also allow £150 for their partner to come to the annual party.

 



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Steve
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