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Giving tax-free gifts to staff: 12 Tax Tips of Christmas

If you’re looking to surprise staff with Christmas gifts – gifting presents to employees would be tax deductible. However please be aware, it is important to ensure that gifts are not excessive over the course of a tax year - as otherwise it may be treated as a benefit in kind and the employee may have to pay tax on it.

Here are some rules when gifting to staff this Christmas:

· The cost of the gift must not be more than £50 per employee

· The gift must not be in return for a salary sacrifice or work carried out

· It must not be cash or a voucher that can be exchanged for cash

For close companies, which includes the typical family-owned company, there is a cap of £300 per tax year for gifts to a director and their family.

Keep up with our 12 Tax Tips of Christmas here -

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