The lights are twinkling, the stockings are ready, and Christmas spirit is filling the air again!

There are many ways to reward your employees in a tax efficient way.  Some can be quite complex, but there are other ways of providing tax efficient or tax-free benefits which are surprisingly simple.

For example, employees can receive a gift tax-free, assuming that certain conditions are met.  To qualify, a gift must:

• be less than £50
• not be cash or cash vouchers
• not be given as reward for performance or be part of remuneration or contractual arrangements

Another fun benefit for employees is the work Christmas party.  You may not have to pay tax on the cost of a party, provided that it is open to all employees, is an annual event and the amount does not exceed £150 per head (but watch out – that £150 per head is the total for the whole year – so all of your work social events including, say, the cost of an annual summer BBQ has to be included in that). 

And don’t forget – you can treat yourself too!  A limited company director can receive up to six £50 non-cash gift vouchers as a tax-free trivial benefit.  The same rules apply here too.

If you’d like some help navigating these options, just get in touch.  Happy gifting!