Small Gesture, Big Impact

To round off a successful year in business, and as Christmas is just around the corner, wouldn’t it be good if you could boost staff morale, reduce your Corporate Tax bill and even offer incentives to join your business?

All in one small gesture.

Well you can.

Employers can now give their employees store vouchers up to the value of £50 each without paying any tax because the gift is covered by HMRC’s trivial gift exemption.

As long as the gift isn’t part of a reward for their work or performance – and it isn’t in the terms of their contract of employment, you won’t pay tax.

Perhaps, for example, you would like to buy all your staff a bottle of champagne as a festive thank you.  You might spend £45 on each bottle.  But what about the staff who don’t drink?  Well, the easy solution is to buy them gift vouchers to the same value.

Both gifts will be free of tax.

But you need to keep to the limit of £50 per member of staff.

If you’re unsure which tax exemptions you can take advantage of right now, please contact rob@treeaccountancy.co.uk for an informal chat.  Merry Christmas!

Leave a Reply