I have a client who is Incorporated, and has around 12 employees each earning under the £8,500 threshold per annum. I understand the rules regarding up to £150 per head for staff parties etc.
But wonder if anyone can shed any light on Gifts for Employees. Christmas is coming, and my client would like to make a gift to each and every one of his employees.
He wants to give them a cash bonus, which would be taxable, and I am trying to think of another way of him saying thanks.
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Replies (3)
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Trivial benefits are tax (and NIC) free. HMRC gives some examples in EIM21863 - they regard a couple of bottles of ordinary wine or a turkey as OK, but take a dim view of a case of wine or a hamper.
Thanks
Many Thanks Euan
I had looked, but just couldn’t find that myself. So thank you for the link.
If not so trivial
How about a PSA so the employees aren't paying tax and getting their tax codes messed with on something they didn't ask for. It's funny how an intended act of generosity can backfire.