So here we are again, Christmas is looming, my wife telling me we should go shopping and put up the tree (which I’ll dust off from the loft).
In the spirit of goodwill, perhaps we should think about thanking our staff (which includes you) by giving them a little something. Of course we want anything we give to be tax efficient, so here’s some ideas.
Work party
You can spend up to £150 per head, per year on staff parties. That can be one party, or several, providing the combined cost doesn’t exceed £150 per head, your business can claim tax relief, yet your staff (and you) pay no tax.
High street vouchers
You can give your staff high street vouchers, which you can buy online or in supermarkets up to the value of £50 each. There is no limit to the number of vouchers you can buy, however they should not replace salary or be a reward for work. They should be a genuine “thank you”, “happy Christmas”, “happy birthday”, “happy wedding” … you get the idea. If you are a director of your own company, then you are limited to £300 per year. Again, tax relief for the business, no tax on the recipient.
Cycle to work scheme
This is effectively a loan to your employee for them to buy a bicycle and safety equipment for them to cycle to / from work. As the business, you buy the bicycle and safety equipment, the employee pays you back before tax and NIC, saving them 28% on the cost. As a result, they own a bike at a huge discount. They are then fitter and healthier, meaning they work harder for you!
Best wishes to you all for the festive season and a rewarding 2025.