Can I Claim Gifts to Clients as a Business Expense?

Only If All Three Conditions Are Met

HMRC allows business gifts to clients, but only if the gift meets all three of these conditions simultaneously:

1. Costs less than £50 per recipient per tax year
2. Carries a conspicuous advertisement for your business (your logo, business name, or branding)
3. Is not food, drink, tobacco, or a voucher exchangeable for goods

If any one condition is not met, the gift is not allowable.

What Qualifies

• Branded pens, pencils, or stationery sets (under £50, with your logo)
• Calendars and diaries featuring your business branding
• Branded notebooks or notepads
• USB drives with your company logo
• Branded mugs or water bottles
• T-shirts or caps with your business name
• Branded tote bags

What Doesn't Qualify

• A bottle of wine — food/drink, regardless of branding
• A box of chocolates — food
• An Amazon gift card — voucher
• A luxury hamper — food/drink
• An unbranded item over £50 — fails both the branding and the cost test
• Any gift over £50 — even if branded

The £50 Limit

The £50 limit is per recipient per tax year. If you give the same client a £30 branded pen in October and a £25 branded notebook in January, the combined total is £55 — over the limit, and neither gift is allowable for that tax year.

Client Entertainment vs Gifts

Taking a client to lunch is entertainment (not deductible). Giving them a branded pen is a gift (potentially deductible if conditions are met). The distinction is important — gifts and entertainment follow completely different rules.

For more on what's allowed, see our guide on entertainment expenses.

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