For all you super generous employers this is a very topical subject at this time of year although the same rules apply throughout the year. So, if you’re in a generous mood and feel the need to treat your staff to something this festive season please read on.
In short, as long as the gift doesn’t exceed £50 it is tax free and there is no need to include it on the annual P11D declaration of benefits.
It must not be part of their employment contract.
There must be no terms attached.
It cannot be cash or voucher.
For Directors the rule is slightly different in that there is an annual limit of £300 for gifts.
For something different an alternative to gifts and bonuses for staff is time off.
Please remember if you have the slightest doubt it is always best to check with us first before making a costly mistake.