Gifts and Tax at Christmas Time

Gifts and Tax at Christmas Time

Father Christmas, Tax, Gift Tax, Accountants, Makes Sense AccountantsAnother festive question from our clients is; “are gifts tax deductible? What about vouchers and bonuses?

Business gifts to clients are only allowable as a tax deduction if the total cost to one individual per year is less than £50.

Gifts to staff: In some cases HMRC will consider a benefit exempt if the monetary value is so trivial it is not worth pursuing. HMRC has said a seasonal gift such as a turkey, bottle of wine or box of chocolates can be exempt. But a case of wine, a bottle of fine wine or a hamper is not likely to be considered trivial.

Vouchers: are subject to tax and National Insurance.

Christmas bonuses: are subject to PAYE and NI as additional salary.

For more information speak with Tim Hammond who is Director of Makes Sense on 07920 141762

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