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Factors to consider for festive shopping

By Ola Sulaimon
Ronzl Accountants

THE time to be jolly has come again and I was reminded of this fact when I saw my favourite mince pies on the shopping racks recently.

This time is also the time we love to show appreciation to our clients, our team members and also our family. We often do this by giving them gifts, entertaining them by throwing Christmas parties, etc.

However, it would be more fantastic if you were able to claim tax relief on these gifts -that could be like your Christmas gift from HMRC.

You could think, obviously, that business gift and client entertainment would be deductible as an expense and wonder why this is a gift. If you don’t meet certain conditions, even when these transactions are made for business reasons, they are disallowed for tax purpose, therefore you miss that Christmas gift.