IT has long been a tradition for employers to reward their workforce with a small gift or two at Christmas to thank them for their work during the year.
In the past this has been followed by a hangover for the employer as the Inland Revenue has sought to tax this token of gratitude.
But there are tidings of goodwill, reports Ken Voller employment tax specialist at business advisors BDO Stoy Hayward in Southampton.
Following a case involving the gift of turkeys last Christmas, the Inland Revenue has confirmed that "trivial gifts" are no longer taxable benefits and so food, drink and flowers can be given to staff without any tax consequences.
Ken said: "Employers still have to be careful concerning the cost and nature of the gift. But, in the main, this means Father Christ-mas does not turn into Scrooge in the new year!"
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