Want to reward employees at Christmas? There are better ways than cash or a bonus in their pay.
Individual gifts under £50 in value (excl cash and vouchers) are exempt from tax. And there is no limit to the number of individual gifts.
It must be a gift though, and not in lieu of work or services. HMRC: “the benefit is not provided in recognition of particular services performed by the employee as part of their employment duties (or in anticipation of such services)”.
It gets better if you’re a director – up to £300 per year for a family business.
It’s a great way to help staff celebrate Christmas without the taxman taking a cut!
