Lucentum Christmas 2013

Christmas is fast approaching as I write this blog. Business owners may want to give their staff, customers and suppliers a Christmas gift or party, but what are the tax impacts of this? Firstly, we need to consider the nature of the gift. Generally speaking, gifts to customers or suppliers are not allowed to be deducted from profits for the purposes of calculating taxable profits, unless they clearly and prominently show your company name, cost less than £50 and are not temporary in nature, eg food or drink. You may make trivial gifts to staff, such as a bottle of wine, or a Christmas Turkey, and these will be allowable costs for the purposes of calculating your taxable profits and will not be assessed as a benefit in kind for the individual. So if you are a company director operating alone, go and treat yourself to a trivial gift this Christmas!

Christmas parties for staff are also fully deductible for taxation purposes. You can spend up to £150 per head on a Christmas party for staff without it being assessed as a benefit in kind, as long as the event is open to all staff. Again, if you are a limited company director, then you are staff and this limit applies to you even if you are the only one working in the company. So go on, treat yourself this Christmas!

We would like to take this opportunity of wishing you a very merry Christmas and a prosperous New Year!

Lucentum will be closed over the Christmas holiday period from 2pm Monday 23 December 2013  until Thursday 26 December 2013 and will reopen on Friday 27 December 2013.

 Together with B1G1 we will be making a charitable contribution to feed, shelter and educate 100 Children daily for the 12 Days of Christmas! 

(click here to watch our Christmas Message for 2013)


This entry was posted in B1G1, Just for fun, tax and tagged , , , , . Bookmark the permalink.

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