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Top tax tips for Christmas

 tax tips for ChristmasOn the first day of Christmas, my accountant gave to me…

Some amazing tax tips for the Christmas season!

See, we can even make tax festive!

Now the tax man isn’t as generous as Santa, but there are still some savings to be had, as well as some considerations you need to think about when you are out celebrating this December.

So from us to you here are some tax tips for Christmas, Merry Christmas from all at Blue Rocket Accounting, and enjoy the tax savings this festive season!

  • Time to party – don’t forget that the annual Christmas party is tax deductible (unless you are a sole trader, you can’t take yourself out for a meal and deduct the tax!). As long as you don’t spend over £150 per head (including transport and accommodation) and the event is open to all staff then you can start celebrating!
  • Christmas gifts to clients – yes you can give your favourite client, supplier or customer a Christmas present (hint, hint) which is tax deductible as long as it’s less than £50 (for the whole year) and that it has to incorporate some advertising for your business. So time to crack out that latest landlord leaflet that you have had designed (yes, we have got one). And bad news, that bottle of prosecco is excluded, as is tobacco and food, so no mince pies. And forget that M&S voucher too
  • Christmas gifts to staff – now we know the idea of dressing up as Santa at the Christmas party is one which you look forward to every year, but doling out the presents to your employees does have a tax perk. Again, the cost must be less than £50, and it’s not something that’s part of their contract, or is given as an award for their performance. It’s just because Christmas is the time for giving for the sake of giving and to give you a warm feeling in your tummy. But slipping a fiver or a voucher into a card just isn’t going to cut it, as cash and vouchers as exempt from this rule. HMRC has to class any gift as being trivial. So when Scrooge gives Bob Cratchit a turkey, he’s got the tax man in the back of his mind…
  • The Christmas bonus – now here’s where the tax man does goes a little bit Scrooge, as all Christmas bonuses are classed as additional salary, and therefore subject to PAYE and NI as normal. So don’t forget to take this into account when calculating the sums

So why not get into the Christmas spirit, get planning the Christmas party and Secret Santa for your staff, logo embossed presents for your clients, and enjoy the tax perks that come along with that!

Merry Christmas one and all!

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