As the holiday season approaches, it is important to remember HMRC’s rules which apply to staff gifts and celebrations!
To be exempt from reporting a party/social function from HMRC, it must:
-Be open to all your employees
-Be an annual event
-Cost less than £150 per person
Gifts paid in cash to employees are taxable as earnings and subject to tax and National Insurance.
Gifts to staff are exempt to tax as long as they: cost £50 or less, are not cash/vouchers, are not a work/performance-related reward and are not in the employees’ contract.
Knowing how to take control of your business finances to maximise profits can be difficult, especially with the current climate. Knowing the common mistakes to avoid can be difficult and can leave you feeling unsure.
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