|
As always at this time of year businesses look at Christmas as an opportunity to reward key customers, suppliers and staff, but do you know what the Revenue will make of your generosity?
In particular you should be aware of:
 |
Staff entertainment and the Revenue interpretation of the £150 "allowance", especially if there has been more than one "do" in the year. |
|
Client entertainment remains not allowable as always but the Revenue are seeking to review in greater detail the reasoning behind each entertainment cost and the retention of clear records for each expense will be of great help in a later review. |
|
Gifts for customers are treated as entertainment and do not qualify for tax relief unless there is signficant advertising of your business attached to it for example pens, beermats, calendars whcih clearly carry your business name, logo etc. |
|
Gifts for staff can create difficult issues under PAYE or as benefits in kind and a happy staff member now can become a very unhappy person next year if they are hit with an unexpected tax bill based on the value of the gift. |
|
Vouchers continue to be a very difficult area because of the rules applied for both tax and National Insurance. |
 |
To summarise, monetary rewards which can be easily put through salary are probably the easiest to administer and therefore identify the full cost to your business, anything else should be carefully considered, especially if it may create a tax cost at a later date!
If in doubt, please call us for advice before you start giving.
|
|