Christmas Gifts

With Christmas well and truly on its way, we thought we'd let you know all you need to know about giving gifts to your employees.

A tax exemption is available but there are some conditions that are in place:

• The cost of the gift has a maximum value of £50 (or on average when gifts are made to multiple employees)
• The gift is not cash or voucher
• The employee is not entitled to a voucher as part of a contractual agreement (including salary sacrifice)
• The gift isn't provided in recognition of particular services performed by the employee as part of employment duties
• With the employer is a "close"company and the gift is given to an individual who is the director, an office holder or member of the household/family, the exception is captive £300 (per tax year)

These conditions MUST be met or the benefit will be taxed in the normal way.

The “£50 condition” is one of the main conditions – if the gift exceeds £50, the full amount will be taxed, not just the excess over £50.

We hope this helps to make the rules and regulations of gifting at Christmas (and any other time of the year) clearer - if you're still unsure of anything, please don't hesitate to drop us a line.

Email office@bucklerspencer.co.uk or call 01283 217256.

Buckler Spencer - Where Everybody Counts