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Is this gift subject to Income Tax

Is this gift subject to Income Tax

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Can you please assist.

I am a PAYE employee for Company A, Comapny A provide services for Company B.  

An employee of Company B has given me personally a gift to celebrate the birth of our baby. The gift is £100 cash. 

Is this subject to income tax? 

The HMRC website suggests that it would not be as the gift is on personal grounds,

'A gift does not count as earnings within section 62 if it’s made:

  • on personal grounds (for example, a wedding present)
  • as a mark of personal esteem or appreciation'

however given this gift is cash and cash from a client i'm unsure if this would instead be classed as income having arisen from the employment therefore taxable.


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07th Dec 2018 09:25

I vote not taxable.

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07th Dec 2018 09:41

I wouldn't spend much time thinking about it.

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07th Dec 2018 10:33

I also vote not taxable. If it helps, the gift isn't from a client, it's from an employee of a client.

Not worth your time worrying. Depending on the nature of your profession though you may need to consider if it affects independence/impartiality, depending on whether it's strictly regulated work.

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