But the moment you think “gift”, your business brain (or your accountant…) probably whispers: “Is this tax-deductible?”

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Are client gifts tax-deductible in the UK?

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Yes — but only if you meet HMRC’s conditions.

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Client gifts can be an allowable business expense, but the rules are tighter than most people expect. HMRC essentially wants to ensure you’re gifting for business purposes — not sneaking in personal treats.

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To claim a tax deduction, your gift must:

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✅ Cost £50 or less per recipient per tax year. If it’s even £50.01, the whole cost becomes disallowable — not just the extra bit. Brutal, but true.

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✅ Include a conspicuous business logo. HMRC loves a bit of branding. If your logo is on it, they’re happy to treat it as advertising rather than pure goodwill.

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❌ Cannot be food, drink, tobacco, or vouchers. Yep — that means no wine, no chocolates, and no Amazon gift cards if you want to claim a deduction. These items are automatically disallowed unless they’re part of a larger promotional item that still meets the logo requirement.

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❌ Cannot be gifts to your employees. That falls under an entirely different set of rules (trivial benefits, staff entertainment, etc.).

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Examples of allowable client gifts

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Here’s the kind of thing that normally passes HMRC’s test:

• Branded notebooks or stationery

• Mugs, flasks, and water bottles with a logo

• Calendars

• USB sticks

• Tote bags

• Diaries

• Power banks

• Umbrellas with your logo (classic accountant move)

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These remain allowable as long as they’re:

• Under £50 each,

• Not food/drink/tobacco,

• Clearly branded with your business name/logo.

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This is why many firms stick to high-quality branded merchandise — it’s safe, HMRC-friendly, and practical for clients.

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Examples of client gifts you cannot claim

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Even though these may feel like normal business courtesies, HMRC won’t allow the deduction:

• Hampers

• Wine, whisky, champagne

• Chocolates and cakes

• Restaurant or shop vouchers

• Tickets to events (these fall under “entertainment”)

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These must be treated as business entertainment, which is almost always disallowable for corporation tax.

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What about client entertainment disguised as a gift?

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Some businesses try to get clever with things like “event gifts” or “hospitality bundles”. HMRC sees straight through this. If the substance of the expense is entertainment, it’s simply not allowable.

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VAT treatment of client gifts

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VAT has a similar £50 rule.

• If your gift is under £50 per person, and you’re giving it for business purposes, you can reclaim VAT.

• If you exceed the £50 limit (again, even by pennies), VAT becomes blocked.

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Are client gifts worth it?

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Absolutely — they’re a powerful brand tool.

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Just be strategic:

• Keep it under £50

• Keep it branded

• Keep it non-food

• Keep your accountant happy

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If you want to send something more personal or luxurious, go for it — just don’t expect tax relief on it.

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Conclusion

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Client gifts can be allowable for tax, but only if they’re branded, non-consumable, and under £50. Anything else is likely going to be treated as business entertainment — and HMRC doesn’t give breaks for those.

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If you’d like tailored advice — or want to make sure your gifting strategy is actually tax-efficient — feel free to reach out.

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