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Thursday 14th December 2017

Give Christmas gifts and save tax!

 You can give gifts up to £50 in value to your employees, including directors, without creating taxable benefits. In other words, you can give them a gift and reduce your corporation tax.

The gift must be bought by the company, not refunded to the employee, and it can’t be a reward for any work or achievement. So for example, you can give them a bunch of flowers or a Marks and Spencers gift card for Christmas, and this would be considered a gift. However, if you did the same because they had achieved a target for the month, then this would be taxed as a benefit to the employee.

It can’t be cash, or a voucher exchangeable for cash. There are no limits on the number you can provide to an employee, but there is a limit of £300 worth of gifts a year for each director/secretary and their family.

Further guidance can be found here

XERO CERTIFIED CLOUD ACCOUNTANTS

We will link your business bank account to Xero software. All your income and expenses will feed directly in to Xero. This saves you time in preparing your year end paperwork, and you can even store your documents in Xero