What can I buy staff and clients for Christmas?

Many businesses like to reward staff and thank clients for their ongoing support at Christmas with gifts. This year it feels even more important to recognise people’s hard work and loyalty. After the year we’ve had in 2020, we could all do with a reward now we’ve finally reached the end!

Not all gifts are tax deductible however so here is our quick guide to what you can buy clients and staff at Christmas.

Branded goods

Any gift bearing your branding can be offset against your tax for up to £50 per gift. This can work well with clients as a reminder of your company as well as being something useful for them. Even better if they post on social media about it! Speak to your marketing department to remember to add your social media usernames for them to tag you. If you know theirs, why not tag them as the presents are wrapped!

Christmas parties

You are granted a £150 per person limit on your claims but you can offset the Christmas party against your tax. Now this year you might need to be a bit creative! But many people are hosting online events with or without events companies to host them such as wine tasting or online comedy nights. These costs can be claimed for.

Small gifts as Trivial Benefits

Again, up to a £50 limit, you can treat your staff to purchases you make on their behalf. These can include edibles and alcohol, clothing and technology, but stick to the £50 spending limit! Could you consider buying from your clients to show a bit of mutual support, especially for smaller businesses?

If you do choose food, drink, or tobacco, however, you can not claim back any tax for these if you buy them for clients.

You can buy food, drink, or tobacco for staff and claim the tax back.

Here are our top 5 ideas that won’t end up being re-gifted and are tax deductible!

  • Online event vouchers
  • Membership subscriptions
  • TV streaming subscriptions
  • Adult learning classes
  • Letterbox gifts