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Christmas gift from company to client

  • 15-12-2012 2:55pm
    #1
    jonniebgood1
    Registered Users, Registered Users 2 Posts: 3,578 ✭✭✭


    As a start up Ltd company business this year I have had help (referrals for work) from a couple of people in particular. I would like to make some acknowledgement of thanks at Christmas. What is the best way of doing this?

    My own idea was something like a gift voucher for an amount approx €200 or so. Can this be done as a company expense or what is the revenue opinion on this? I don't want to do anything that is likely to cause book keeping problems at a later date.

    Thanks for any help on this.
    Tagged:


Comments

  • #2
    dbran
    Registered Users, Registered Users 2 Posts: 2,094 ✭✭✭dbran


    Hi

    Gifts to customers may be classed as client entertainment and may be disallowed. It dosent mean that you cant pay them out just that you may not get a tax deduction for them.

    Regards


    dbran


  • #3
    Peterdalkey
    Closed Accounts Posts: 2,091 ✭✭✭Peterdalkey


    Tax free gifts to staff are allowed up to Euro 150 per year in value per person!!.................erm?


  • #4
    dbran
    Registered Users, Registered Users 2 Posts: 2,094 ✭✭✭dbran


    Hi

    Op's post seems to suggest that they are not staff but simply people who gave him referrals, helped him out etc. The title of the thread also suggests that they are gifts to clients.

    The small benefits scheme that applies to employees which I believe you are referring to does not operate in the way you describe.

    Kind Regards


    dbran


  • #5
    jonniebgood1
    Registered Users, Registered Users 2 Posts: 3,578 ✭✭✭jonniebgood1


    dbran wrote: »
    Hi

    Gifts to customers may be classed as client entertainment and may be disallowed. It dosent mean that you cant pay them out just that you may not get a tax deduction for them.

    Regards


    dbran

    Thanks for help both.


  • #6
    Peterdalkey
    Closed Accounts Posts: 2,091 ✭✭✭Peterdalkey


    dbran wrote: »
    Hi

    Op's post seems to suggest that they are not staff but simply people who gave him referrals, helped him out etc. The title of the thread also suggests that they are gifts to clients.

    The small benefits scheme that applies to employees which I believe you are referring to does not operate in the way you describe.

    Kind Regards


    dbran

    Dbran is quite right. I cogged this!


    Under Irish Revenue’s Small Benefits Exemption Scheme, employers can reward employees with a non-cash bonus of up to €250 in value completely tax free each year. Provided certain guidelines are followed, neither the company nor the employee will pay PAYE, PRSI or USI, potentially saving €326 in tax

    To qualify for the tax exemption, only one tax-free bonus may be paid to each employee in any one year. If more than one bonus is given in a year, it is only the first one that will qualify for tax-free status, even if this bonus is less than the €250 annual allowance - any used allowance cannot be carried over. The tax-free bonus must also be paid in non-cash form.
    Cheers

    Peter


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