Q: Can I claim VAT on staff benefits?
You can reclaim VAT on staff benefits regardless of how much they cost. If you provide a product (say a Kindle) it counts as a supply of goods and you must account for VAT as if you had sold it, so this contras out the VAT that you reclaimed.
No VAT is payable on the following:
- if the value of all gifts you give to your employees is less that £50 for the entire year
- gifts that are exempt or zero-rated (i.e.a book)
- the gift is a service (i.e. gym membership) N.B. this should to be offered to all employees