Tax Relief on Staff Gifts – 01/12/2021

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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.

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