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 - www.p-r-l.co.uk/12-tips