{"id":1026,"date":"2013-11-27T12:42:37","date_gmt":"2013-11-27T11:42:37","guid":{"rendered":"http:\/\/sjbealehrconsult.co.uk\/blog\/?p=1026"},"modified":"2013-11-27T12:42:37","modified_gmt":"2013-11-27T11:42:37","slug":"the-tax-situation-of-seasonal-gifts-benefits-to-staff","status":"publish","type":"post","link":"https:\/\/sjbealehrconsult.co.uk\/blog\/the-tax-situation-of-seasonal-gifts-benefits-to-staff\/","title":{"rendered":"The Tax Situation of Seasonal Gifts And Benefits To Staff"},"content":{"rendered":"

With Christmas nearly upon us yet again this is a quick reminder of the tax treatment of seasonal \"christmas_party\"<\/a>gifts and benefits to staff.<\/span><\/p>\n

Social functions for employees<\/strong><\/p>\n

There is a tax exemption for employee entertaining, but terms and conditions apply. The relief only applies to \u2018annual parties\u2019 available to all staff and is set at \u00a3150 per head. The figure is inclusive of VAT. If the cost of qualifying parties goes over \u00a3150 per head then unfortunately all the costs (not just those above \u00a3150 per head) are taxable as a benefit in kind.<\/p>\n

Taxis home and any overnight accommodation have to be included in the calculation.<\/p>\n

It\u2019s important to note that the amount of \u00a3150 per head applies to all those attending the function not just employees. This will come into play if employees are allowed to bring guests.<\/p>\n

Tax on business profits<\/strong><\/p>\n

The cost of employee entertaining, as long it\u2019s not incidental to the entertainment of others is allowable. If you invite clients and customers to your party, it is important to consider how to apportion the costs for corporation tax purposes.<\/p>\n

Gifts to employees<\/strong><\/p>\n

Christmas presents paid in cash to employees will always be taxable along with other earnings. The same treatment extends to vouchers that can be spent on either one or a number of different shops of the employee\u2019s choice. The employee has to pay tax on the full value of the voucher.<\/p>\n

If employees are given a seasonal present, such as a turkey, an \u2018ordinary\u2019 bottle of wine or a box of chocolates, as long as the cost is reasonable, HM Revenue & Customs (HMRC) won\u2019t seek to tax it. Unfortunately, HMRC will not tell us the monetary limit it considers as \u2018trivial\u2019 but in our experience, less than \u00a350 a head is usually acceptable. If the value of the gift is more than this, it will be taxable.<\/p>\n

This blog has been provided by Duncan Mitchell of CED Accountancy Services Ltd.<\/p>\n

Contact details:<\/p>\n

TEL 01327 358866<\/a>
\nFAX 01327 358355
\nEMAIL duncan@cedas.co.uk<\/a>
\nWEB www.cedas.co.uk<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

With Christmas nearly upon us yet again this is a quick reminder of the tax treatment of seasonal gifts and benefits to staff. Social functions for employees There is a tax exemption for employee entertaining, but terms and conditions apply. The relief only applies to \u2018annual parties\u2019 available to all staff and is set at […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1026","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"aioseo_notices":[],"yoast_head":"\nThe Tax Situation of Seasonal Gifts And Benefits To Staff<\/title>\n<meta name=\"description\" content=\"Employers need to be aware of the tax situation of seasonal gifts and benefits to staff.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sjbealehrconsult.co.uk\/blog\/the-tax-situation-of-seasonal-gifts-benefits-to-staff\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" 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