Yes, as an employer you can give tax free gifts to your employees provided that they satisfy the following four points:
- It cost you £50 or less to provide
It is important to note that should the benefit exceed £50, for example the gift was £50 and the postage was £2.99, then the whole benefit of £52.99 would become taxable and not the value in excess to £50.
- It is not cash or a cash voucher
Tangible gifts such as flowers, chocolates and wine are common gifts which comply with legislation.
- It is not a reward for their work or performance
For example, you cannot run an incentives campaign and reward your staff through this exemption.
- It is not in the terms of their contract
This cannot be part of their contractual compensation.
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Written by Katy North