Staff Christmas presents... and tax
- Roger Clough
- Nov 18, 2024
- 1 min read
You can give your staff members a Christmas present without it becoming a taxable benefit-in-kind, but there are some rules to stick to:
Cost:
It needs to be what HMRC define as trivial – less than £50 per head (this includes delivery charges too)
Is it £50 excluding VAT?
Yes, if you are VAT registered the allowance is £50 plus VAT per member of staff. If you are not VAT registered it is £50 including VAT.
What can it be?
Not cash, or vouchers for cash. And it mustn’t be performance-related. But can be pretty much anything else under £50 – a turkey, wine, beer, a hamper for example.
How often?
The same rules apply to any gifts to staff, not just Christmas presents. But the £50 limit is a 12 month rolling period, so you can’t do a Christmas present at £45 and an Easter Egg at £10 without incurring a tax charge.
About the author
Dr Roger Clough, founder
Roger has a PhD in UK food retail change, has lectured extensively in business finance and accounting, and has run several businesses over three decades. As an AAT Licensed Accountant he likes to be on a journey with clients rather than the kind of accountant who just prepares the statutory accounts after the year end – meaning that advice can be given and decisions can be made before it is too late.
About Clough Accounting
t 01736 601657
Roger Clough t/a Clough Accounting is an AAT Licensed Accountant
© Clough Accounting, 2024
Comments