Tax Free Turkey's
Want to give an incredible gift and save money too? Choose the Lifestyle Gift Card!
While employees may be looking forward to the idea of a Christmas bonus, cash (or money added to payroll) is not considered to be exempt for taxation purposes and that means there is a tax burden. Either you pay the extra, or the employee won’t get the full amount! To give an example, if you give £50 into a pay packet, this comes back after NI and tax as a paltry £36 for employees. Not very festive!
Instead, by saying yes to giving an approved trivial benefit, such as a £50 Lifestyle Gift Card, which HMRC recognises as allowed, your employees get the value of the whole £50, to spend on 190+ quality brands. They can buy essentials, presents or even turkeys!
We've explained all the details on trivial benefits here so you can pick up that perfect tax free Christmas treat for your team.
Use our Tax Savings calculator to see how much you could save!Simply input your team size and your gift value (up to £50 according to HMRC rules) and watch the savings soar.
So what is a trivial benefit?
A tax-free Christmas gift is sometimes referred to as trivial benefits, or benefits in kind - but in short, it’s the perk that the HMRC allows so employers can give something small, like food, chocolates, wine or even a turkey as an ‘allowable expense’.
In short, it’s not declared, and you can offset it against your tax bill. It’s a super way to stretch that budget, because the fact is - cash isn’t kind.*
*For more information on trivial benefits, visit Gov.uk.
Tax Free Turkey's
Holiday gifting for employees: What are the trivial benefits rules?
- The amount giftable before bing subject to taxation for both the employer and the employee is £50*.
- Any benefit given/received is not cash or cash voucher.
- It cannot be a contractual obligation or payment for performance or job duties.
- If you are a limited or close company gifting, your benefits cannot exceed £300 in the fiscal year.
These rules for exception also apply by extension to any family member of an employee and any outsourced third-party services.
Tax Free Turkey's
The benefits to the employer
- It is tax free - so it's much cheaper than paying cash through the payroll - 60% cheaper!
- It is much more memorable and rewarding than cash - rather than getting lost in the pay slip
- The gifts can be personalised and flexible
- It's easy to organise, deliver and we manage all the administration
The savings -v- cash
Any cash payment made to an employee is subject to tax and national insurance contributions.
Using the trivial benefits exemption* a £50 gift card costs the employer £50 and the employee gets £50 of value. Whereas £50 paid through payroll would cost the employer £56.90 (after employer NIC's) and for a basic rate taxpayer would be worth £34 after tax and NI. Less for higher rate taxpayers.
Everyone's favourite reward
Order your Christmas rewards today!
Wallet or eVoucher
Making rewarding and gifting easy, whatever your needs.
Free branding & personalisation
Personalise with a special message and your logo.
Next day delivery
Choose from first class or courier delivery.
Experts on hand to help you design and reward.
We are BCorp Certified.
No admin fees or minimum spend.
Choose vouchers from over 190 of the UK’s best-loved brands.
Including the UK's top retailers, cinemas, holidays and more than 16,000 dining and pub venues.
What others say about us
The process in obtaining/procuring life:style Gift Cards is easy and timely. A clear and easy to complete order form makes requesting these a simple process and requests and always dealt with speedily and efficiently. The vouchers are hugely appreciated by our staff as part of our Rewards and Recognition schemes.
Great service, very quick deliveries and everything is straight forward!
We moved over to life:style Gift Cards for staff incentives a few years ago and it's been a great change with lots more choice for the team on where they can spend the vouchers. It's an easy company to do business with especially during COVID where we were granted an extension on the expiry date of all unused vouchers due to being in lockdown.
I use Motivates quite regularly for my role. They are always efficient and very helpful if I have any queries. The life:style Gift Cards can be used at many different businesses, whether retail entertainment or food. Very accessible!
The Motivates Points site has been instrumental in engaging our customers, allowing us to incentivise and reward simply and quickly. It's been so successful that others in the business have used it and the engagement has constantly grown since day one. We're really pleased with the service offered by Motivates and the customers love it!
Since launching the life:style Gift Cards for our Long Service Awards last year, they have been a big hit with the Employees as there is more to choose from then our previous provider. We also use vouchers for our wellbeing weeks and other ad hoc events such as Christmas and Easter.
Having a broad range of brands to choose from through life:style is great, it allows our colleagues to choose something that is important to them be that a trip to LEGOLAND or some much needed vouchers for ASOS! The personalised wallet they receieve with every voucher is great and makes winning a voucher feel extra special.
We have used Motivates for a number of years from our annual Awards event and end of year Christmas reward right through to general recognition for a job well done. Ordering e-vouchers is always quick and easy and well supported by the great Motivates team. Our employees love life:style because there's so many ways to spend the vouchers.
We're here to help
Need more information? Need help with a voucher you've received? Want help using Lifestyle for your business?
Whatever it is, we're here to help and we'd love to hear from you.
Drop us a message to firstname.lastname@example.org