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December 16, 2010

The gift of tax-free gifts

Reward your employees with a tax free turkey!

For once, the HMRC has some good news to share!

“An employer may provide employees with a seasonal gift, such as a turkey, an ordinary bottle of wine or a box of chocolates at Christmas. All of these gifts are considered to be trivial and as such are not taxable.

For an employer with a large number of employees the total cost of providing a gift to each employee may be considerable, but where the gift to each employee is a trivial benefit, this principle applies regardless of the total cost to the employer and the number of employees concerned.”  If a benefit is trivial it should not be included in a PSA. (EIM21861)
So, turkeys for everybody!

More information can be found on the HMRC website

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