Is Voucher Giveaway an allowable expense?
pramsay13
Posts: 1,934
Forumite
in Cutting tax
I'm self-employed and have given away a voucher in a promotion.
Can I claim the value of the voucher as an allowable expense?
Can I claim the value of the voucher as an allowable expense?
0
Comments
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what does the voucher entitle the holder to receive and what was the nature of the promotion?
there are specific rules where a voucher may be classed as disallowed business "entertainment", hence the need to know the context0 -
The promotion was to promote the business.
It was for a certain amount (£60) that can be used to pay me for my products.
Do you have a link to the different rules so I can check them?0 -
so the nature of your business is you buy and sell physical goods?
the voucher is nothing more than a £60 discount off the normal full price of the goods that you normally sell as part of your business?
a sales discount is not an expense, it's a discount0 -
I buy raw materials and then manufacture items.
The £60 voucher will cover one of these items so I won't be getting any money.0 -
I think you can only claim the actual cost to you, not the retail price. So if the raw materials for the item cost you £30, and you would normally sell it for £60, the cost to you of the voucher would be £30 not £60.0
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I buy raw materials and then manufacture items.
The £60 voucher will cover one of these items so I won't be getting any money.
you have simply given a 100% sales discount so have spent £x on raw materials and got £0 income. Net effect you can claim £x raw materials purchase. Just as you would have done anyway.0 -
Thanks for your answers.
That makes sense now.0
This discussion has been closed.
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