Treat Yourself or your Employees – Tax Free!
Did you know you can treat yourself and your employees tax free?
❓ Are you a Director of a close company?
❓Do you like to reward your employees to celebrate birthdays or other special occasions?
Did you know you could do this tax free without you or your employees having to pay income tax or national insurance contributions!
You can reward yourself or your staff with a £50 benefit from the company. The benefit must not exceed £50 per staff member or the whole benefit will become taxable.
You cannot give the benefit as part of a reward for their work or performance.
The employee must not be entitled to the benefit as part of their contract.
The trivial benefit must not be cash or a cash voucher but it can be a voucher for a shop/online store/experience day for example or even a bunch of flowers or a lovely hamper!
Special rules apply for Directors or other office holders and their family or household member if also an employee of a close company. The amount is capped at £300 per year.
(Example: 6 x £50 gift vouchers between 6th April and 5th April). For other employees, there is no annual cap on the gift vouchers!