White Collar Consultants Limited

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Can I give my staff a gift?

23/11/2018

Trivial Gifts

You can give your staff trivial gifts of up to £50 every two months during a tax year without them having to pay tax on the gift.

But as usual with HMRC the devil is in the detail, so here is what we know.

  1. The gift cannot excess £50 / transaction e.g. You cannot buy a new dress for £150 and let the company pay £50.
  2. The gift may not be cash or a cash equivalent i.e. gift cards.
  3. The gift must be paid for by the company e.g. You cannot buy a new kettle for home using your personal credit card and refund yourself from he company.
  4. It cannot be part of any contractual obligation, i.e. the company cannot pay plusnet for you home broadband, because this is a contract between you and the service provider.
  5. As a director or employee of a company you cannot receive more than £300 in trivial gifts a year that means one every two months.
  6. Ensure the gift is £50 or under even if it is very £50 the full amount will be taxable and not just the excess.
  7. Be careful of food, drinks and tobacco products the rules may differ.

Related topics:

Is my staff Christmas meal tax deductible?

Yes – You are allowed to spend up to £150 / employee on a Christmas party during a year, this can be split up into more than one event.

Are gifts to clients tax deductible?

Yes – however gifts to clients – Must be under £50 must contain your company logo and advertising, again be careful of food, drinks & alcohol.

For further information please see BIM45065, BIM45070, EIM21863

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