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Christmas Gifts to Staff/Directors

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neversay
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Christmas Gifts to Staff/Directors

#103331

Postby neversay » December 11th, 2017, 11:40 am

I'm considering a £50 Amazon voucher as a Christmas gift for several staff, directors and a couple of subcontractors (clearly marked "with thanks from <company name>"). The HMRC guidance is a slightly ambiguous whether this will come under trivial expenses/gifts as they discount vouchers that can be exchanged for food. Would others here think it's acceptable or is there a similar tax-efficient alternative gift that you use/recommend?

redsturgeon
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Re: Christmas Gifts to Staff/Directors

#103366

Postby redsturgeon » December 11th, 2017, 1:26 pm

neversay wrote:I'm considering a £50 Amazon voucher as a Christmas gift for several staff, directors and a couple of subcontractors (clearly marked "with thanks from <company name>"). The HMRC guidance is a slightly ambiguous whether this will come under trivial expenses/gifts as they discount vouchers that can be exchanged for food. Would others here think it's acceptable or is there a similar tax-efficient alternative gift that you use/recommend?


According to this it would fine if it not a "cash voucher"
https://www.gov.uk/expenses-and-benefit ... l-benefits

You don’t have to pay tax on a benefit for your employee if all of the following apply:

it cost you £50 or less to provide
it isn’t cash or a cash voucher
it isn’t a reward for their work or performance
it isn’t in the terms of their contract
This is known as a ‘trivial benefit’. You don’t need to pay tax or National Insurance or let HM Revenue and Customs (HMRC) know.

PinkDalek
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Re: Christmas Gifts to Staff/Directors

#103369

Postby PinkDalek » December 11th, 2017, 1:45 pm

In more detail here in the HMRC manual (I've yet to establish why it says "draft guidance"):

Employment Income Manual (EIM) 21864 https://www.gov.uk/government/publicati ... t-guidance

Note the annual £300 re directors and officers of close companies (and their associates). Further explained in EIM 21869.

I'd also query whether "with thanks" is the correct wording, as it may suggest "it is in recognition of the services provided" .

neversay
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Re: Christmas Gifts to Staff/Directors

#103384

Postby neversay » December 11th, 2017, 2:19 pm

Many thanks @redsturgeon and @PinkDalek. I had a wobble because the other HMRC pages suggest that it can't be used on vouchers be swapped for food which could be purchased with Amazon vouchers. Problem solved!

redsturgeon
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Re: Christmas Gifts to Staff/Directors

#103411

Postby redsturgeon » December 11th, 2017, 3:16 pm

neversay wrote:Many thanks @redsturgeon and @PinkDalek. I had a wobble because the other HMRC pages suggest that it can't be used on vouchers be swapped for food which could be purchased with Amazon vouchers. Problem solved!


Ah...that's gifts to clients.

John


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