Gifting to employees and directors:
- Directors are allowed to receive products or vouchers up to £300 PER YEAR. This does not have to be one product, it can be several.
- Employees can receive a number of gifts or vouchers throughout the year but they cannot exceed £50 at any time.
A few warnings…
- If you exceed the amounts, the whole amount is taxable as a benefit in kind.
- Directors cannot exceed the £300 limit, and each gift must be £50 or less.
- Employees cannot receive these gifts as reward for work/effort – they must be entirely unconditional gifts (eg, birthday, Christmas, celebratory etc).
- You cannot habitually gift employees – when it becomes ‘expected’ (ie monthly, weekly, or at regular intervals) it becomes a benefit in kind and is fully taxable.
So go buy yourself a Christmas present, and buy all your team members a nice gift….just don’t go over the threshold!