Virtual Christmas parties and tax-free gifts for your employees
While we may not be able to get together for our annual Christmas Party this year, that does not mean Christmas is cancelled.
December is usually the month when many companies would be enjoying their Christmas Parties and thanking staff for all their hard work throughout the year.
However, given the current Covid-19 restrictions, many Christmas Parties will be put on hold or even cancelled, this year.
Under normal circumstances, where a business holds an annual event for all its employees, at a cost that does not exceed £150 per head, the benefit is exempt from income tax.
This year, HMRC have acknowledged that it has been very different year and many face to face events have been replaced with virtual gatherings. HMRC have confirmed that, providing all the conditions are met, the cost of virtual gatherings are included in the £150 exemption.
You could spread a little more Christmas cheer by giving your employees a bottle of wine, a hamper or a gift voucher! Providing the cost to provide such treats does not exceed £50 per head, the ‘trivial benefit’ exemption will apply .
Go on, join in the festive spirit!