I’ve just approved my favourite invoice of the year…
The one that provides our team with perks over Christmas!
This year, as always, we’re gifting our team a card from a company called GifPay, that they can use at over 200 shops, hotels, and entertainment venues.
We’ve found this is far more appreciated than a gift we choose for them. It allows employees to treat themselves to something they truly want. In my experience, they’re more likely to spend these cards on themselves rather than on family expenses – which can happen with cash gifts.
But there’s another reason we’ve made this our go-to Christmas gift: it’s tax-efficient.
If you gift your team a cash bonus, they’ll pay tax on it, and you’ll pay National Insurance. By contrast, if you use a gift card or similar of up to £50 they can be tax-free for employees and deductible for corporation tax under the ‘Trivial Benefits’ rules.
You do though need to ensure you follow the rules very carefully for this to apply. HMRC’s guidance is here – Tax on trivial benefits – GOV.UK
In my email last week, I mentioned the mounting costs facing employers, such as the rise in National Insurance coming next year. In this climate, cutting costs wherever possible has never been more crucial.
Christmas gifts may seem like a small example, but as Tesco says: Every little helps.
As the need to save money grows, it’s worth considering other cost-effective ways to reward your team and show your appreciation. Two great examples I’ve come across recently include offering additional days of annual leave or more flexible working arrangements.
If you’re unsure where or how else you can save money, we’re here to help.
At Insight Associates, we work with companies turning over £1 million to help them grow faster and become more profitable. Reducing taxes and expenses is a key part of this – and we take a proactive approach.
Or simply email garry@insightassociates.co.uk or call us on 01279 647 447 to discuss how we can support your business.
Warmly,
Garry
