Tax free gifts to employees S2

It's the season to give back 

As we approach the end of 2022, many employers will begin to think about making gifts to their employees around the festive season. In last week’s article, we discussed various frequently asked questions around the Trivial Benefit rules, if you haven’t already seen that article, you can read it here 

Remember that the key thing is that all gifts provided need to fall within the definition of a trivial benefit for it to be tax-free. The criteria for Trivial Benefits are:

• It cost you £50 or less to provide
• It isn’t cash or a cash voucher
• It isn’t a reward for their performance or work
• It isn’t in the terms of their contract 

This week we are going to discuss some gift idea suggestions, this is not an exhaustive list as there are plenty of gift options out there! 

E-Gift CardsAn E-Gift Card is just the same as giving your staff a physical gift card, the only difference is that it will be sent to their email address, be sure to inform them if you are sending staff an E-Gift card so that they know when they receive the email that it’s genuine and not spam! 

• For an e-gift card to be tax-free you must ensure that 
  • It isn’t worth any more than £50
  • It cannot be exchanged for cash
  • It must be a genuine gift – if it is a performance-related reward then it is taxable.

Some examples:

• Why not go for a little luxury and send them a White Company e-gift card? You can add your personal message to this card, and it can be delivered on a certain date. 
• For chocolate lovers, you can’t go wrong with a Cadbury e-gift card. Again, you can schedule this to be sent on a specific date. 
• Selfridges could be an option to allow people to get a nice bottle of wine or drink of their choice and gives non-drinkers the option to get something of their choice.  
• Or why not let your employees choose for themselves and go for a One4All e-gift card?

Gift HamperA festive hamper full of Christmas goodies is perfect for a Christmas gift. Fill it with festive foods and perhaps a nice bottle of wine, which they can share with their families during the festive season, this is the perfect gift to show them your appreciation. Just ensure that it costs less than £50 to ensure that it is tax-free. 

Festive flowers Bloom & Wild delivers fresh flowers in a post-box size box. Why not go for a festive bunch of flowers delivered to their door for them to enjoy in their homes?

Deliveries to the doorMost retailers offer delivery of gift items. So, you could choose an actual gift to be delivered to employees. 

Some examples are:

• Amazon has a useful Giftfinder where you can put in personal preferences of who you are buying for, and your budget, and it will suggest options that may work for them!
• Marks & Spencer offers a range of hampers and gift options under £50.  
• A £50 voucher for them to use at their favorite restaurant. 
  • Pizza Hut - Get a pizza delivered to the door in time for lunch!
  • KFC delivers to the door via Uber Eats, Deliveroo, or Just Eat.

With years of experience in taxation, we can work with you to clarify your goals, and formulate a clear plan for you, giving you inspiration and direction to help you maximise your growth potential. Get in touch with the team at Oldfield via  info@oldfieldadvisory.com or call 02476673160 and we will be happy to advise on the best solutions for your business.

Please note: The suggested retailers and links are provided for your benefit in the spirit of helpfulness and inspiration; however we cannot endorse the retailers themselves or their products, or guarantee the safety of the links provided. This article is provided for information only and was correct as at time of writing (11/11/22). Any lists and details provided above are not exhaustive and are not intended to be full and complete guidance.  No action as a result of these should be taken without consulting detailed legislation or seeking independent professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this article can be accepted.