Save £££'s on Christmas rewards
Save 60% on your Christmas staff gifts this Christmas with the Lifestyle Gift Card.
Make it easy to reward your employees this Christmas by taking advantage of the governments trivial benefits tax exemption.
Save 60% on your Christmas staff gifts this Christmas with the Lifestyle Gift Card.
Make it easy to reward your employees this Christmas by taking advantage of the governments trivial benefits tax exemption.
While employees may be looking forward to the idea of a Christmas bonus, any cash (paid through payroll) is always subject to tax and national insurance. So, after the taxman has taken their share, your employees may not have enough left to buy their Christmas turkey!
There is another way – which will cost you less and is tax free* too!
Instead, by giving a £50 Lifestyle Gift Card, your employees get the value of the whole £50 tax-free, to spend on 500+ quality brands. They can buy essentials and presents they're guaranteed to love!
Giving £50 of Lifestyle at Christmas is always cheaper than giving £50 in cash, so don’t delay and get in your Christmas orders.
* For details on HMRC Trivial Benefits allowance see HMRC Employment Income Manual 21864
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.
These rules for exception also apply by extension to any family member of an employee and any outsourced third-party services.
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.
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Need more information? 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 sales.team@motivates.co.uk