Are corporate gifts tax deductible? How to send a tax-free employee gift box

Are corporate gifts tax deductible? How to send a tax-free employee gift box

Each year companies across the world send employee gift hampers to their staff as a way of expressing gratitude to their teams for all their hard work. The most popular time of the year to give corporate gifts to employees is around the Christmas period. Corporates can enjoy finding the perfect employee gift hamper for their staff and having a fun occasion to express gratitude. Workers can look forward to receiving their employee corporate gifts around the Christmas period. There is a lot of work that comes into selecting the perfect corporate gift such as researching whether the gifts are tax deductible and how to send tax-free employee gift hampers. On top of this employers need to collect addresses and understand any dietary needs. If you have found the perfect employee gift hampers for your team and want to know how to send corporate gifts tax-free this article is for you. Read on to learn the rules and make sure your corporate gifting fits the UK rules.

Your employee gift box budget must be set to £50

For businesses who want to send employee gift boxes tax-free this Christmas, there are certain rules you have to follow. Firstly, the value of the employee's Christmas gift, including VAT, must not exceed £50 for each employee. This is why many corporates looking to send employees Christmas gifts set a budget of £50. If your gift costs over £50 then the whole gift is taxable under the usual benefit-in-kind rules.

You cannot give cash or a voucher that can be exchanged for cash

Secondly, the gift cannot be cash or a gift voucher that can be used to exchange for cash. A gift card that can be used in a retail outlet or online should be fine as long as it cannot be exchanged for cash.

Your employee gift box cannot be given with a salary sacrifice

Thirdly, whether you opt for a gift card or an employee gift box, your gift may not be issued under a salary sacrifice or other arrangement. A salary reduction or other arrangements in return for an employee gift box goes against the rules.

You can send multiple employee gifts

If you want to send multiple employee gifts throughout the year then this is allowed. Many companies send an employee hamper for Christmas and an employee gift box for birthdays. However, an employer cannot send large employee hampers worth over £150 tax-free and try and break them down into multiple smaller gifts.

How to send an employee gift box tax-free

If you follow all the rules above you will be able to send your employee gift box tax-free. Stick to Christmas gifts under £50 that are either physical gifts or gift cards and make sure this employee gift box has no impact on salaries.

What employee Christmas gifts can I get for a £50 budget?

The Sustainable Foodie Gift Box - £48

Sustainable Foodie Gift Box. Social enterprise gift box surrounded by food products that are perfect for snacking.
Social Stories Club Large Gift Box
Sustainable Foodie Gift Box. Social enterprise gift box surrounded by food products that are perfect for snacking.
Social Stories Club Large Gift Box

For employees who love sustainable food and drink, this special snacking gift box is the perfect present for foodies! The special thing about this gift box is that every product has an inspiring social story of how it is changing the world. Your recipient may enjoy sipping on a cup of refreshing Earl Grey tea while supporting tea-growing regions' educational infrastructure, they can snack on crunchy apple crisps that help fight food waste. With the included story booklet, you will learn about the many different aspects that make this thoughtful gift special. It makes an excellent gift for foodies, with chocolates, honey, biscuits, nuts, chutneys, and teas to try. Each gift is packed by individuals with barriers to employment, by a social enterprise gifting company. If you are looking for a sustainable employee gift box that creates an impact the sustainable foodie gift box is the first place to go.

Build Your Own Gift Box - 9 Treats - £45

Build Your Own Gift Box - 9 Treats. Build your own ethical gift box. Build your own ethical hamper.
Build Your Own Gift Box - 9 Treats. Build your own ethical gift box. Build your own ethical hamper.

A specially curated treat box where you get to decide what goes inside your employee gift to express your care and appreciation. Every individual is unique, so the customised gift hampers for employees, co-workers, and clients this season are unique. These hampers are filled with organic soaps, frothy hot chocolate, handmade candles, and a lot more—all made by social enterprises and available on our website. The story booklet that accompanies this thoughtful gift explains the impact behind the items so you can read about how your candle is transforming communities in India and how your socks are providing homeless people with a free pair. Select your treats, choose a personalised message, and we will do the rest. Now you can have fun creating a customised hamper! For large orders of bespoke corporate gifts, get in touch with our team for a 1:2:1.

Gift card - £50

Social Stories Club Gift Card
Social Stories Club Gift Card

Support a social enterprise with gift cards for employees this Christmas. Purchasing an employee gift card can have a significant impact on small businesses this holiday season. Smaller, more sustainable corporate Christmas gift suppliers can be used in place of large corporate suppliers this Christmas to support those enterprises that matter to you. Sustainably sourced corporate Christmas gift suppliers like Social Stories Club, a gifting company based in Edinburgh, are ready to fulfil your large orders and educate your employees on sustainability. Corporate Christmas gift suppliers that promote and practice sustainability are an example of these businesses. When you purchase a gift card from Social Stories Club, you can choose what's inside the gift.

Conclusion

Now you know how to legally send corporate gifts to employees. Sending a tax-deductible corporate gift really is not that challenging. Now you know how to send employee hampers tax-free you just have to choose the perfect corporate gifts for you. There are plenty of sustainable corporate gifts for employees you can purchase for under £50 from the opportunity to build your own employee gift box, to pre-curated sustainable corporate gift hampers. Social Stories Club is a great place to find your employee gifts this Christmas. Check out the shop page to see the different employee Christmas gifts. We are not experts in tax and have done the research for you but it is always best to double-check with a specialist. HMRC is a great resource for information on taxation around gifts.  

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Corporate Gifting - gift card with gift hamper

Social Stories Club Corporate Gifting

If you are looking to show your team how much they are appreciated, attract and retain clients, or you have a corporate event and you want to create an impression, then our sustainable corporate hampers are just what you need. We have created the most exciting gift to give and receive which are packaged beautifully using sustainable materials, filled with delicious products made by social enterprises, and also include a storybook starting conversations about sustainability.

"Social Stories Club is a fantastic initiative that enables social enterprises to collaborate in such a creative way. The perfect way to buy gifts with a social impact" - David Adair, Head of Community Engagement, PwC