Who doesn’t like to get a gift at Christmas? Or what about two gifts – now you’re talking! Did you know that there are tax breaks when a business gives gifts? Businesses in the know will deduct the cost of gift-giving against their profits and pay lower tax. But how can you make sure that you get the job done systematically? The easiest way to organise this is to split the gifts into two categories: those for the staff, and those for the clients.
In general, if an employer gives an employee a gift, the employee is taxed on it. Some present! But employers who know the guidelines will offset the cost against their business profits as well as making the gift tax-free for the recipient. It is just a question of taking care of the small stuff, as well as, seeing the bigger picture. This is something we’re proud to do at Mazuma.
A nice bottle of wine, chocolates, Christmas food, a hamper, or a restaurant voucher? They will enjoy the treat and know that they’re appreciated. But what if you want to give something that is not recognised under the guidelines? Mazuma can help you to deal with this option as it may involve you paying HMRC for your employee’s tax on the gift.
Businesses can claim deductions on gifts to clients as long as they follow the guidelines, but the deductions are not quite as generous as those for employee gifting. Mazuma has a team of experts on hand and online to simplify the process, or simply read on for a summary:
Mazuma can help with all of your accountancy needs – festive or otherwise. We provide a hassle-free, online accounting service. We make everything easy, taking the stress away from you, allowing you to focus on business. Everyone needs an accountant and we’re here to simplify the process and help you.