Scratch cards to staff as xmas gift?

Is a scratch card OK to give within trivial benefits rules?

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Client has called this morning asking if it is OK for them to put a £5 lottery scratch card in each staff member's Christmas card.

There are 50 staff and they won't be getting any other Christmas gift from the company this Christmas.

Is a scratch card OK within the trivial benefit rules?

It's not cash or cash voucher - but there is  chance that it might be.

I'd appreciate your thoughts please so I can get back to them.

Thank you

Replies (12)

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By bernard michael
20th Dec 2023 10:42

What happens if they win £100000 ??
I assume it's not part of your engagement letter with the client so surely shouldn't it be treated as nothing other than a pro bono gift. The way you've worded the question it seems that every member of staff gets one not just those working on the client.........................even you??

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Replying to bernard michael:
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By tltodman
20th Dec 2023 10:57

Sorry for the confusion - client wants to put the scratch card in Christmas cards to all of their own staff .
(Sole practitioner here, but happy for them to put one in my card too!)

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Replying to bernard michael:
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By David Ex
20th Dec 2023 11:01

bernard michael wrote:

What happens if they win £100000 ??

They’ll leave and find a better employer.

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Replying to bernard michael:
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By Postingcomments
20th Dec 2023 20:01

While it is unscratched, is it Schrödinger's Scratchcard? Simultaneously worth £nil and £100k?

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stonks
By WinterDragon
20th Dec 2023 11:15

Not my area of expertise but a quick google trying to find anything relevant only yielded a few articles with titles such as "Why Scratch cards are awful gifts for your employees."

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Replying to WinterDragon:
paddle steamer
By DJKL
20th Dec 2023 11:30

Agree.

Twenty years from now they sue their employer who, by giving them a scratchcard, set them on the path to their future gambling addiction.

Same applies regarding gifts of everything else, booze, cigars etc. Twenty years from now everything wrong with our lives will be someone else's fault.

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By Tax is always taxing
20th Dec 2023 11:27

I would say its fine, as in no tax issues.

As to any wider issues, that's not really your concern or your place to advise.

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By Postingcomments
20th Dec 2023 19:59

Bit of a chavvy thing to do, isn't it?

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By Dogracer
22nd Dec 2023 10:24

I think we all get too hung up over trivial amounts and not just benefits we are talking about £250 here

Too trivial to worry about and thinking about this too much means that the fee for the client is more than £250

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By listerramjet
22nd Dec 2023 10:50

The reply is simple enough. “If I were to advise you from a tax perspective it would cost you £x.”. But from an accounting perspective if you code it to office expenses as Christmas cards it is unlikely to cause any worry or confusion. Happy Christmas!”

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By JCresswellTax
22nd Dec 2023 10:56

Who cares. Just do it. Its a fiver!

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By Caber Feidh
22nd Dec 2023 19:01

You need to take advice from a physicist about Schrodinger's cat. For details, see https://en.wikipedia.org/wiki/Schr%C3%B6dinger%27s_cat

The card can be considered simultaneously both worthless and very valuable, while it remains unscratched.

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