Providing employees with christmas presents

As an employer you can give tax-free gifts to your employees provided that they satisfy the following four conditions:

1. The total cost to the business is £50 or less to provide

Note: if the gift exceeds £50, for example, the gift was £45 and the postage cost was £6.99, then the whole amount of £51.99 would become taxable.

2. No cash or cash voucher is given to the employee

Tangible gifts such as flowers, chocolates, and wine are common gifts that comply with legislation.

3. The employee is not rewarded for their work or performance

A company cannot run an incentives campaign and reward your staff through this exemption.

4. This is not specified in the terms of their employment contract

This cannot be part of their contractual remuneration.