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Posted Thu, 26 Jan 2023 12:22:16 GMT by lulb
I'm a sole trader. Can I record stock purchased with non-cash gift cards as an expense if the gift cards were gifted to me?
Posted Fri, 27 Jan 2023 16:03:58 GMT by HMRC Admin 20
Hi lulb,

No. There hasnt been any expense as the gift card has covered the cost of the item. only if there was a balance to pay then you can claim that.

Thank you
Posted Fri, 27 Jan 2023 18:05:11 GMT by lulb
Ok thank you. So just to clarify, this contradictory answer I found on the internet is false? "You can deduct any expenses that are ordinary and necessary for the business. The source of the money is not relevant. The gifted money was your money, the same as the cash in your wallet, the funds in your bank account or the credit limit on your credit card. "
Posted Tue, 31 Jan 2023 15:57:51 GMT by HMRC Admin 19

Your stock needs to be purchased by the business to qualify for the business expense. Stock purchased with a gift card, is not stock purchased by the business.
 Where the cost of the stock exceeds the money from the gift card, then the difference can by claimed by the business.

Thank you.

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