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Giving at Christmas – A Quick Guide

‘Tis the season of good will, but before you start being too generous, do bear in mind the following when Giving at Christmas:

Seasonal Gifts

Seasonal gifts to employees should be small, or, according to the HMRC ‘trivial’ to avoid any tax implications http://www.hmrc.gov.uk/manuals/eimanual/EIM21863.htm. Sticking to perishable/consumable goods, under the value of £50, would probably be wise eg a turkey, bottle of wine (not vintage) or box of chocolates.

Vouchers

Vouchers are regarded the same as cash in the eyes of HMRC, so will be taxable.

Christmas Party

An annual Christmas party can be tax exempt, but conditions do apply including a per head limit of £150 which includes VAT and costs for the whole event, so don’t forget to include the taxis fares home and any overnight accommodation that may be provided.

Anti-Bribery Rules

Make sure you clarify and communicate your policies about giving and receiving gifts to and from suppliers and clients, so that neither you nor your employees fall foul of anti-bribery rules https://www.gov.uk/anti-bribery-policy

Charitable Donations

Don’t forget the ‘feel-good’ factor of charitable donations at this time of year – you can claim Corporation Tax relief on gifts of money or donated equipment, or why not promote Payroll Giving to employees http://www.hmrc.gov.uk/individuals/giving/payroll.htm

And Lastly

If you’re really stuck for ideas, seasonal flu jabs are tax free!

 

HAPPY CHRISTMAS!

WORD OF WARNING: Please do check the small print on the HMRC website links to avoid any nasty tax-related surprises and always seek professional advice regarding specific actions.

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