Gift to an employee

Gift to an employee

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I have got only one employee. I was thinking of giving him a gift voucher for xmas instead of taking him for a meal - would it be tax deductible? I like him and would like to reward him but as I see him so often I think he would more appreciate the gift:)

On the other hand if we go for a meal and I spend £300 on it - would I be able to deduct £150 ( as far as I know the max amount per person) or the whole £300?

Thank you!

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By Steve Knowles
13th Oct 2011 12:38

Gifts taxable

Are you looking at this from your point of view as employer, or from that of your employee? -the £150 per head is the non-taxable benefit for an annual (Xmas)party.

 

"If you earn at a rate of £8,500 a year or more, or are a director, any
gift from your employer is taxable unless your employer is an individual and
makes the gift in the course of family, domestic or personal relationships." - from HMRC helpsheet 207, non-taxable payments or benefits

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