VAT Notice 700/7: Business promotions – updated

By   10 January 2020

Further to my articles here, here, and here HMRC have, on 30 December 2019, updated the relevant Notice which covers, inter alia; business gifts, samples and promotional schemes.

The changes are summarised here:

  • Technical content has been updated to take account of developments in both law and policy on vouchers
  • A new section has been added as a result of the changes to the treatment of vouchers issued after 1 January 2019
  • The definition of the meaning of a gift has been amended
  • An explanation of the treatment of the disposal of obsolete stock has been added

This can be a complex area of VAT, especially valuation, and care should be taken when promotion schemes are being considered.