The £1,800 drawer of PR gifts costs £468 in real tax, and nobody sent the cash to pay it
Gifted Products Tax Calculator
Gifts with an obligation are income at market value: the tax on your drawer at your marginal rate, and the verdict when there were truly no strings.
Gifted Products Tax Calculator
PR gifts tied to an obligation are trading income at market value. This is the tax on the freebies, in pounds.
Where the line actually sits
A genuinely unsolicited one-off freebie with no strings is not normally trading income. The moment there is a brief, a tag, a deadline or an ongoing relationship, it is payment in kind at market value.
The demo drawer: £1,800 of gifted kit on £28,800 of other profit costs £468 at the basic-band margin of 26 per cent. Cross into higher rate and the same drawer costs £756.
Keep the log: date, brand, item, value, obligation. The Gifts and PR Log workbook is the evidence file, and declining a gift is always allowed.
Take the workbook
The marginal computation in Excel plus a starter log of the demo drawer.
Download the workbookFAQs
Can’t find the answer you’re looking for? Please chat to our friendly team.
We provide bookkeeping, VAT returns, payroll, tax filings, annual accounts, and advisory services — tailored to freelancers, SMEs, and ecommerce businesses.
Yes. Every client works with a named accountant who knows your business inside out. You’ll never deal with call centres — just direct, personal support.
We’re certified partners with Xero and QuickBooks. Our digital-first approach means you’ll always have real-time access to your financial data.
We offer fixed monthly packages with no hidden fees. Pricing depends on your business size and the level of support you need — but you’ll always know exactly what you’re paying for.
Absolutely. We handle VAT, corporation tax, self-assessments, and payroll tax. We also manage HMRC correspondence on your behalf to ensure you never miss a deadline.
No. While many of our clients are London-based, we also support businesses across the UK and ecommerce sellers worldwide through our cloud-based systems.
RESOURCES
Fresh takes on business and accounting.
Trading profit is split on a time basis. Interest, rent, gains, donations and dividends each follow their own rule, and mixing them up misstates both accounting periods.
A long period of account needs two separate capital allowances computations, and since April 2026 they are not even calculated at the same writing down rate.
Company law allows accounts to run for 18 months; corporation tax never allows an accounting period longer than 12. Here is how the split is drawn.
CONTACT
Get in touch
