Expenses and benefits: Christmas gifts
28 Sep, 2017
It is established practice that Christmas presents paid in cash to employees are almost invariably taxable as earnings. This view has been upheld by the courts on many occasions and can mean that a gift from a well-intentioned employer is worth less than
the giver or the recipient expected.
An alternative to a cash gift may be to give staff a seasonal gift such as a turkey or bottle of wine. In order to ensure that this is not a taxable gift, it is important to confirm that the trivial benefits in kind (BiK) rules apply.
The trivial BiKs apply where the BiK: