HMRC spreads some Xmas cheer
As of 6th April 2016 employers can provide staff with some “trivial” benefits in kind, tax free. The rules were designed to allow companies to give small gifts at Christmas or for birthdays. They save employees from having to report the benefit on their P11D, or employers dealing with tax and NI.
The benefits need to meet the following conditions:
- The cost must be £50 or less and not given as cash or a voucher.
- The benefit shouldn’t be something an employer was already entitled to.
- The benefit is not given in recognition of normal employment duties.
This is in addition to £150 per employee tax free allowance for Christmas party expenditure.
Happy Christmas HMRC.
If you want any help sorting out the implication of this benefit then please get in touch today.
Lewis Smith & Co. – Accountants for businesses in Brierley Hill