As we wave goodbye to another year and the festive season fast approaches, it offers the perfect opportunity to infuse some holiday spirit into your workplace and express your appreciation towards your devoted staff for their input throughout the year.
Gladly, some merry options can benefit both you and your employees. So, let’s delve into these heart-warming, tax-efficient ways you can treat your team in the run-up to Christmas.
Gifts are a universal symbol of appreciation and goodwill, and they certainly have a place in the corporate setting. The best part is, you can gift your employees with items worth up to £50, completely tax-free from their perspective.
Furthermore, the cost of such gifts is tax-deductible for you, the employer, making this a win-win scenario!
Bonuses are a great way of showing gratitude to your team and boosting morale. You should bear in mind, however, that Christmas bonuses are subject to tax.
This includes upfront tax deductions for the employee and employers’ National Insurance (NI) for you.
Therefore, ensure that all bonuses, whether given via bank transfer or cash, are processed through the payroll.
Lastly, who can resist the idea of a fabulous Christmas party? The firm’s annual get-together isn’t just tax deductible for you, but it also spares your employees any tax implications.
However, here’s the catch – the cost should not exceed £150 per head. It is also important to note that this amount is not a ‘Christmas only’ limit, but an annual one.
How Blue Spire can help you make sure you celebrate in the most tax-efficient way
As delightful as these options sound, managing the related tax implications might seem a tad bit overwhelming.
This is where Blue Spire can help by simplifying these complexities for you, and finding innovative ways to help your business thrive.
Get in touch with Blue Spire today if you need advice on how to ensure the Christmas season is enjoyable and hassle-free for you and your workforce.
|If you have any questions or need advice on any of the above, then please do not hesitate to contact us.