Legislation Change Leaves Room For Celebration
This year it seems HMRC are bringing good tidings to all who run a business!
Recent changes in the law mean all businesses with staff (companies, partnerships and self-employed) can now give each employee one-off or regular benefits of up to £50, which the business can claim corporation tax relief on – and which don’t create a taxable benefit for the employee.
A qualifying benefit could include a gift card (like a credit card), a Christmas hamper, flowers, chocolates etc. Although the benefit applies all year round, the festive season is a great opportunity for employers to thank their staff whilst saving tax at the same time!
Even better is the fact that directors of Limited Companies can receive the same benefits, as long as each one is less than £50 and the total provided in one year does not exceed £300.
There are a few things to bear in mind though. Employers do need to make sure that the benefit is not provided in connection with an employee’s work and that it cannot be converted directly into cash – so vouchers are unlikely to qualify. Other than that it’s Merry Christmas everybody!
If you’d like us here at Smith Newmans to help you share the Christmas cheer, then get in touch on 023 8060 2100, or contact us via www.smith-newmans.com.