Our Tax tip number three is to be generous and give out lots of presents!
There are three types of gifts you can give – the first are to clients, the second to your staff, and the third is the best of all – gifts to yourself. Watch our video to learn more about this.
What gifts can I give to clients?
You can give any gifts you want to clients, but you only get tax relief if they meet a few criteria.
The gift cannot be worth more than £50, and there is also a limit of £50 per customer per year.
The gifts must have your company name on it in a conspicuous way and, unfortunately, they can’t include alcohol, food, tobacco, or vouchers.
So my clients get something much better than alcohol. They get a brand new Jon Davies pen and a notebook! And it’s eligible for tax relief.
What gifts can I give to my team?
For the staff, it’s slightly more relaxed than for clients. Again, you can spend up to £50 per staff member on gifts each year.
But, for staff members, it doesn’t need to have the company logo on and the good news is that you can give them food, tobacco, or alcohol. The only exception is cash or vouchers.
This wouldn’t be eligible for tax relief.
What gifts can I give myself?
Best of all, what about gifts for yourself? If you’re the Director of a company, you can buy yourself gifts.
The limit on these is basically the same as for staff gifts. Each gift can’t be worth more than £50 and can’t be cash or vouchers.
But you can spend up to £300 per year on gifts and claim tax relief.
And if you follow tip two and keep it all in the family, you can actually do the same for any family members who are employees of your company. So you can spend up to £300 pounds on each of them as well.
If you would like any more information, please feel free to get in touch.