Christmas Gifts for staff (and Directors?)

21st November 2017

The time of year is approaching when employers like to show their appreciation to staff for their work during the year. So a review of the rules to follow when making gifts in order to avoid an unexpected tax bill is worth considering.

The main rule is that the cost of a gift per employee should not exceed £50 and cannot be cash or a cash voucher (e.g. M&S, John Lewis vouchers). Also it must not be expressed to be in recognition of specific good performance and should not therefore be different for different people.

So can the directors also benefit from this? - the answer is yes, but within limits. Where the company is a typical 'family-owned' SME, the owner directors and their family / household can together only receive £300 of 'benefits' in each tax year.

For more information on this topic, please contact one of our team on 01273 701200 or

Author: Peter Hedgethorne, Director

 Peter Hedgethorne | Plus Accounting | Brighton

Any views or opinions represented in this blog are personal, belong solely to the blog owner and do not represent those of Plus Accounting. All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. 


front-register for free updates

Register for Free Updates

Receive free news and advice to help you build a better business