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Christmas gifts.

Are they really for staff?

Didn't find your answer?

Last week a director called me and said he isn't bothering this year with Christmas parties or gifts, virtual or not. This week he seems very interested.

In a nutshell, have you any advice on how I should make sure they are Christmas gifts for staff and not his family please? He has 4 sons and the staff are mainly female so this could be a good indicator but he could buy them alcohol etc. Would you just send an email asking for him to put on an email each gift and staff member it is for and its value to ensure the £150 isn't breached? That way at least I have something to protect myself?

 

Thank you for any help

 

Replies (13)

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By Mr_awol
24th Nov 2020 11:06

Why are you checking?

1) Dear client, you appear to have spent £100 at Bargain Booze. What is this for please? Luv N2A.
2) Dear N2A, this was a few bottles of Vodka and a bottle of Jagermeister. I gave it to the staff to say Merry Christmas. Rs, client

Done.

Alternatively you can following it up with:
3) Dear client. Can you prove you gave all that booze to your female staff? I've heard one of them is teetotal, two do like vodka, but the other one prefers Gin? I've also seen your son drinking Jager in Spoons! Thanks, N2A
4) Dear N2A. It's £100. Is this what I'm paying you for? Are you saying you dont believe me? Is this what i get for supporting the FNG? YS ex-client.

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Replying to Mr_awol:
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By New To Accountancy
24th Nov 2020 11:18

Point taken.

Edit: I am still laughing at - Luv N2A

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By tom123
24th Nov 2020 10:39

If I recall, you are 'within' a business as an employee?

In which case, you don't particularly need to protect yourself as such.
Directors may do what directors may do.

What you should not do is try and hide or misdescribe these transactions.

I wouldn't be claiming any VAT on this stuff (esp if alcohol etc).
Code it to entertaining or something.
You can advise the director that gifts to family are not deductible for tax.

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Replying to tom123:
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By New To Accountancy
24th Nov 2020 10:51

Hi Tom,
Yes you did ask me this on another thread and I advised I am not an employee. I have spoken on other threads about previous employments so perhaps that's why. I have already sent an email explaining the do's and dont's but just wondered if i should back it up any further.
'Directors may do what directors may do' - Yes exactly and thank you for your help

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Replying to New To Accountancy:
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By tom123
24th Nov 2020 10:53

OK, my confusion.

If the director had asked you in advance of a transaction for advice, that is one thing.

Reporting things that have already happened is another.

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Replying to tom123:
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By Mr_awol
24th Nov 2020 11:05

tom123 wrote:

Code it to entertaining or something.
You can advise the director that gifts to family are not deductible for tax.

Why entertaining? The client has said it is gifts for staff - gifts which are likely to be covered by trivial benefits rules. Youre being unnecessarily harsh on that point.

Gifts to family arent allowable for tax and also arent legitimate business expenses. Adding them back for CT doesnt solve the issue. You arent being harsh enough on that point.

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Replying to Mr_awol:
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By New To Accountancy
24th Nov 2020 11:16

Perhaps I should have been clearer in my post, the £150 rule MAY try to be utilised but not for the benefit of staff, so for meals, entertaining etc. I wondered if I should do anything further to protect myself but I am clear on what I need to do now. The director knows the rules but may still 'try it on'.

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Replying to New To Accountancy:
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By paul.benny
24th Nov 2020 12:11

The question to ask of director, is what evidence would he be able to provide if challenged by HMRC. For example, were goods ordered for delivery direct to staff? Was there a company-wide notification of a virtual Christmas party? etc.

Of course director may just try it on and fold if challenged. Or blame you. Or get you to collude in making something up.

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Replying to paul.benny:
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By New To Accountancy
24th Nov 2020 12:49

That is very helpful advice, thank you Paul. I feel he would blame me if he was in a position to explain himself, that's why everything we discuss is via email. Even if he doesn't, I just like to protect myself now.
Thanks again for your help.

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By paul.benny
24th Nov 2020 10:57

£150?
Isn't it £50 for trivial gifts?

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Replying to paul.benny:
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By New To Accountancy
24th Nov 2020 11:02

The £150 is for food and drink, entertainment etc but yes the £50 is for trivial benefits.

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Replying to New To Accountancy:
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By Cylhia66
25th Nov 2020 09:43

Is it £150 per member of staff?

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Replying to paul.benny:
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By Tom 7000
25th Nov 2020 09:45

The £150 is for the xmas party or annual event if you prefer
The £50 is trivial benefits max per item
Some people get mixed up....

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