Tax Issue

[harktheherald]

Can you claim tax against christmas presents if they are work-related ?

I was thinking of treating my staff to some nice bits but am I better to just give them a bonus in their wages ?

[Alpha]

you could give your staff small incidental gifts which would be allowable, these gifts HMRC regard as 'trivial' benefits for staff welfare as opposed as to a reward for past services and may include such things as

1) a turkey
2) a box of chocolates
3) a bottle of wine (or 2)

See EIM21863

[UKSBD]

you could give your staff small incidental gifts which would be allowable, these gifts HMRC regard as 'trivial' benefits for staff welfare as opposed as to a reward for past services and may include such things as

1) a turkey
2) a box of chocolates
3) a bottle of wine (or 2)

See BIM31860


When you say allowable does that mean the person who receives the gift
isn't taxed on the value of it, the gift itself is tax deductable by the
company, both?

[Alpha]

When you say allowable does that mean the person who receives the gift
isn't taxed on the value of it, the gift itself is tax deductable by the
company, both?


Both

If treated as staff welfare it is allowable against CT/SA.

If it comes under what HMRC classify as 'trivial gifts' there is no requirement to report on a P11d either so no tax on the employee or class 1A NI for the company.

[harktheherald]

Hi Alpha,

Thank you so much for all your help. That's exactly the answer I was looking for !

Thanks again :D