Are client gifts tax deductible in the UK?
This guide focuses on ordinary client gifts. Staff gifts, samples of your own goods and items supplied as part of a sale can have different treatment. HMRC's overview of business gifts explains the distinctions.
The three conditions for small promotional gifts
Under [HMRC's small gifts guidance](https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim45065), the gift must:
- Carry a conspicuous advertisement for your business on the item itself, not just the wrapping.
- Cost no more than £50 in total per recipient, including other gifts counted under this rule in the same period.
- Be neither food, drink, tobacco nor a token or voucher exchangeable for goods.
The period is the company's accounting period, or the tax year for an unincorporated business. Exceeding £50 removes this exception for the gifts counted towards it; the first £50 is not a deductible allowance.
A clearly branded pen or notebook may qualify. An unbranded present does not qualify under this exception merely because it is inexpensive. Nor does putting your logo on a chocolate wrapper make the chocolate eligible.
Promotional products with your branding work better than chocolate and wine and fit the three rules given by HMRC
VAT: a separate £50 rule
For VAT-registered businesses, VAT recovery and tax deductibility are separate questions.
HMRC's business promotions guidance says no output VAT is due on business gifts to the same person where their combined cost is £50 or less excluding VAT in any 12-month period. Output VAT is the VAT you account for on a supply.
Above that limit, output VAT is normally due on the total cost value of the gifts if you were entitled to recover input VAT on their purchase. Input VAT is the VAT charged to you by suppliers.
This is not the same period or set of conditions as the deduction rule. VAT treatment alone does not establish whether the gift reduces your taxable profits. Ask your accountant to check both, including how recoverable or irrecoverable VAT affects your deduction calculation.
Choose something the client will actually use
Start with the recipient's working day. Tax treatment is one consideration; usefulness still matters.
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Notebooks: Consider paper quality, size and how comfortably the book opens. Our branded notebooks are a starting point for clients who take notes in meetings or plan on paper.
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Reusable bottles: Check capacity, weight, lid design and cleaning requirements. Browse water bottles with your logo, then narrow the choice to how the client will use one.
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Travel mugs: Think about commuting, carrying and washing. Confirm lid performance for the specific model rather than assuming every travel mug or coffee cup can safely travel loose in a bag.
Check the recipient organisation's gift policy too. A gift they cannot accept is unlikely to achieve much, however carefully you chose it.
Brief the branding before approving the product
A recognisable advertisement needs room to work. Tiny lettering or a low-contrast mark can look elegant on screen but be difficult to read on the finished item.
Ask us to check the proposed placement, size and contrast against the product's decoration area. Printing adds ink to a surface; laser engraving marks suitable materials. The appropriate method depends on the item, its finish and your artwork.
Supply a clear logo file and check the visual proof for spelling, position and legibility. Where the finish matters, request a physical sample. A digital proof helps with layout, but cannot fully show texture or the contrast of an engraved mark.
Our guide to corporate gifting provides broader ideas for choosing a thoughtful gift.
**Budget and keep records by recipient
Ask for an itemised quote showing products, decoration, setup, packaging and delivery. Give your accountant that breakdown rather than assuming the website's starting unit price is the figure to use for tax purposes.
Keep a simple campaign record:
- Who received each gift, and when.
- The invoice and an allocation of costs per recipient.
- Any earlier gifts to that recipient in the relevant periods.
- The approved artwork and a photograph showing the finished branding.
- Your accountant's treatment of mixed gift boxes, shared office gifts or uncertain costs.
Work backwards from the delivery date to allow for product selection, stock checks, artwork approval and production. Confirm quantities and timings for the actual order before committing to a campaign.
A useful, well-made gift with clear branding is a sensible starting point. If you have a client list, budget and deadline, send us your brief. We can help you choose merchandise and plan the branding; your accountant can confirm its tax treatment.
This article provides general guidance on client gifts, not individual tax advice. HMRC sources checked on 30 September 2026. No current prices, minimum quantities, stock promises or delivery guarantees are asserted. Examples are illustrative, not client case studies. Product pages confirm listed categories, not availability for an order. Please check with your accountant before ordering