Hi, I tend to struggle knowing how best to advise regarding the treatment of gifts to employees. I believe all gifts should technically be reported on as BIK but in practice the processing of this would costs more than the tax due.
Specifically with regard to leaving gifts, birthday gifts and perhaps performance related gifts (is there issues there??), does the new statutory exemption for trivial benefits in kind makes this an easier area to advise? i.e. Gift < £50 no problem, over that then reportable?
The guidance I've linked to says the gift would have to "meet certain qualifying conditions" including the £50 limit. Are these conditions such as branding / logo to be included or do we not know those conditions yet?
Basically question is, can a leaving gift of any sort < £50 not be a BIK and receive corp tax relief?
Also it appears that the same rules apply to directors of close limited companies subject to annual cap of £300 (bi-monthly gifts!)
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flowers
add to the context of the op question the provision/sending of flowers on illness/ birth or bereavment [ we are not akling a flower garden - but delivery can inflate the gesture value] and flowers or gift on empolyee wedding [ maybe this at greater thasn £ 50 ]
where a non refundable £ 50 store gift card is used for any occassion - what is the ER + EEs position
how ar these postions covered and will they be required to be payrolled rahter than BIK ? going forward
Store card
Thanks for reply. I'm pretty sure that a store card would be equivalent to gift vouchers, which like cash, do not benefit from the trivial benefit exemption.
Store card
Thanks for reply. *I'm pretty sure* that a store card would be equivalent to gift vouchers, which like cash, do not benefit from the trivial benefit exemption.
In many cases you'd be pretty wrong too