We all like a Christmas present no matter how old we are. With Christmas firmly behind us now it’s a good time to look back at the tax we might have saved over the period. If there are any freebies available from the tax man I aim to let you know here…
The question very much depends on who you are.
Businesses/Employees
Social
If you are an employee of a company, your employer can throw you a Christmas party as long as all employees are invited and the company doesn’t spend more than £150 per head on each employee. This is a tax and National Insurance free benefit so if your employer didn’t know about it this year – make sure they know about it next year!
Your employer can also give you a gift known as a trivial benefit. The value must be under £50, it cannot be cash or a cash vouchers, it mustn’t be a reward for work and it mustn’t be a term of your contract.
Gifts
For businesses to know, the company can claim back the Vat and offset the expense against Corporation Tax.
Directors
If you are a director of a company with 5 or fewer shareholders you can receive trivial benefits up to £300 per year.
Christmas gifts from the Government.
Pensioners
If you are drawing a state pension or other relevant benefits you will have received a £10 Christmas bonus which is tax free.