hmrc gift vouchers for staff

The Christmas party, aside from remembering not to embarrass yourself, hmrc also requires that you abide by a few rules when arranging the yearly Christmas party.
The small print, it must be business related; it cannot be alcoholic, food, tobacco or vouchers that can be exchanged for those things.These include vouchers for: travel between home and work on a work bus social functions, such as a Christmas party, up to 150 per head childcare vouchers up to a certain amount.This is providing the total expenditure for the party, including the non-employee guests, amounts to 150 or less per employee attending.Other non-cash awards, if another business provides a non-cash award to one of your employees and makes all the arrangements, its up to the employee to report this to hmrc - you dont have to report or pay anything to hmrc.However, a box of wine or a food hamper are seen as a decent present and therefore, not trivial and completely taxable.Whats included, this includes vouchers that are: exchangeable for cash only exchangeable for goods or services.As an employer providing vouchers to your employees, you have certain tax, National Insurance or reporting obligations.Employer Further Guide to paye and NICs.Its the third partys responsibility to pay whats due.Overview, if you give out incentive awards as part of a pay package, or your employees get awards from a third party, you may need to pay paye tax and National Insurance contributions (NICs) on them.A food gift, you can provide your employees with free catering and no VAT will be due on the supply.Report what youve provided in one of these ways: And if its one you have to pay Class 1 NICs on: report the value of the award to hmrc even if this is before the employees main payday include the amount in the fields for.Vouchers that can be exchanged for cash.Add the cost of the vouchers to the employees earnings - unless theyre luncheon or childcare vouchers.Non-cash vouchers that arent microsoft contest upgrade your world exempt from NICs.The 50 budget includes the gift-wrapping so go easy on the wrapping paper.But if you provide a non-cash award, find out if you have to pay either Class 1 or Class 1A NICs for a specific type of non-cash award by checking the.These vouchers count as earnings, regardless of who gives the voucher to your employee, so youll need to: add their value to the employees other earnings deduct and pay paye tax and NICs through your payroll report any NICs for the pay period when the.