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:
- 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.
- 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.
- The employee is not rewarded for their work or performance
A company cannot run an incentives campaign and reward your staff through this exemption.
- This is not specified in the terms of their employment contract
This cannot be part of their contractual remuneration.