Are you feeling festive? Giving gifts to your employees may be high on your priority list this festive season. But if a gift leaves your employees with a tax and national insurance bill they’re not likely to feel the goodwill you were intending.

Since April 2016 HMRC have given an exemption that allows employers to give ‘trivial’ gifts to employees without the need to report on a P11D or PSA (PAYE settlement agreement) hence negating any tax or NI liability. So what rules to do we need to consider when choosing this year’s Christmas gifts;

-Not exceed the value of £50

-Not be in return for salary sacrifice

-Not be in recognition for an employee’s normal duties

-Not cash or a voucher that can be exchanged for cash (a non-cash voucher would be OK!)

-Not exceed a total of £300 per director or family member of a director within a tax year


So whether you’re planning on giving a turkey or a non-Christmas voucher this Christmas there is now no excuse not to!

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