Gifts

Gifts are tax free to employees if they are non cash, cost £50 or less and are not part of a contractual entitlement or recognition of performance. Any gifts given over £50 have to be reported on a P11D and taxed as a benefit in kind. Gifts to clients/customers under £50 with clear advertising of the business can be claimed as tax deductible. However, food, vouchers or cash are usually not allowable.

Donations to charity as a Limited Company.

You may want to make a donation to a Charity and this can be deducted from your profits to reduce your Corporation Tax. To qualify for the tax relief, the company must not receive any substantial benefit in return for their donation. Benefits can include advertising at charity events, tickets to events, or any public acknowledgement that could be seen as a direct benefit to the company.

Donations to charity as an individual/sole trader

If a UK taxpayer makes a charitable donation to a UK registered charity, and they elect to have the donation classified under the “Gift Aid” scheme, then the charity can reclaim 25% of the donation from HMRC as tax reclaimed under the Gift Aid scheme (this is what the tickbox is for when filling in any forms for the Charity).

In addition, the taxpayer will receive tax relief on the donation. For basic rate taxpayers this is neutral but for higher or additional rate taxpayers, an additional amount of tax relief is obtained when the individual prepares and submits their self-assessment tax return.

Christmas Parties

Staff parties – If a business hosts an annual party, it must be offered to all employees. There is an exempt amount of up to £150 per person (inclusive of VAT) and this covers food, drink, venue hire, transport etc. If the cost per head goes over £150 (even by just £1) the entire amount becomes a taxable benefit. That means it is reportable to HMRC, you’ll pay Class 1A National Insurance on the full cost and employees may have to pay Income Tax on their share.

Clients and customers – Expenses for entertaining clients are not tax deductible.

Decorations

Expenses for office decorations are tax deductible if in a workplace however this does not apply if your workplace is at home.

Let me introduce myself…

I am your local accountant, the sole Director of the practice and my name is Sonya Jolly.

I qualified as a chartered certified accountant in 2000 and have over 20 years of general practice experience.

I have always worked with small owner-managed businesses and individuals. 

I feel my approach allows me to develop lasting relationships with clients, providing them with all their accountancy and taxation needs and requirements.

I like to get to know my clients well and to take the time to learn about all areas of their businesses, resulting in more tailored taxation and financial advice.

I want to offer my service as a Micro-Financial Director within small owner managed businesses within the North-West.

You may not think you can afford such a service but it is easily affordable when this means that you can use your time more effectively. 

Do what you do best and let me concentrate on the financial and administrative side.