30 Nov Gifts and Tax at Christmas Time
Gifts and Tax at Christmas Time
Another festive question from our clients is; “are gifts tax deductible? What about vouchers and bonuses?
Business gifts to clients are only allowable as a tax deduction if the total cost to one individual per year is less than £50.
Gifts to staff: In some cases HMRC will consider a benefit exempt if the monetary value is so trivial it is not worth pursuing. HMRC has said a seasonal gift such as a turkey, bottle of wine or box of chocolates can be exempt. But a case of wine, a bottle of fine wine or a hamper is not likely to be considered trivial.
Vouchers: are subject to tax and National Insurance.
Christmas bonuses: are subject to PAYE and NI as additional salary.
For more information speak with Tim Hammond who is Director of Makes Sense on 07920 141762