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It’s nearly Christmas!!!

Posted by on Dec 9, 2016 in News | 0 comments

                   Tax Free gifts from the company to its employees up to £50 (including VAT) for Christmas …..?            Main rules summary below: Must be a gift by the employer and must not be about rewarding for good work carried out (that is deemed to be “pay” in kind and taxable) The gift must be up to £50 including VAT. If the gift is over £50 including VAT,  say £51, the whole  £51 is taxable (not just the excess) The gift from the employer can include food and drink, but not cash or vouchers convertible to cash (Champagne, turkey, flowers  etc are fine) The gifts must not be expected by staff as would then be deemed to be “pay” Other points… Can be any number of gifts to an employee (just need to have an occasion – birthday, New Year?) Maximum total limit on gifts to a Director in a tax year is £300 including VAT (so please keep a record of the generosity to individual staff! )             Annual Christmas party?  Annual year end party?             Main rules summary: Remember these can’t be regular events otherwise they are not “annual” £150 including VAT per person maximum in a tax year . If more than £150 including VAT per person, the whole amount becomes taxable on the employee. Event must be for all staff members          Remember to contact your accountant to discuss your own particular circumstances                                            ...

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