In the run up to Christmas we thought we’d give you a few hints and tips about tax efficient benefits for your employees.
April 2016 brought in new rules for trivial benefits. There is no annual requirement, and it covers small non-cash gifts, e.g. flowers, wine, meals etc. Unlike the Christmas party it doesn’t have to be available to the whole workforce and provided:
It doesn’t exceed £50 per head/unit cost;
It isn’t a reward for work (so not a bonus or thank you for hitting targets);
It's not part of the employees’ contract...
...it’s totally TAX FREE for the employee.
Best use of this is probably to take staff out for a birthday meal, remember you can’t give them cash to pay for it though. You can also send them flowers, wine and other small gifts when they’re ill, have a baby, get married etc. You can provide a turkey, a hamper or a non-cash voucher at Christmas.
Unfortunately there is a £300 per year restriction on this for directors and officers of close companies.
So treat your staff this year - it's tax free for them and a tax deductible expense for you!