Christmas Tips
Posted on 11th December 2019 at 13:25
As bookkeepers we like to help our customers stay in line with the many different rules and regulations over this period that they may or may not already be aware of.
For example did you know that VAT is redeemable on entertainment at Christmas?
Having a Christmas party?
According to HMRC VAT Notice 700/65, you cannot reclaim the VAT element on your party expenses if only directors and/or their partners attend the event. ... However, you can reclaim the input VAT if directors and partners attend a staff party alongside other employees.
Buying gifts for your employees?
Christmas presents paid in cash to staff will be taxable as earnings in the normal way (subject to tax and national insurance). The same tax treatment also applies to vouchers exchangeable for cash, with the employee taxed on the full value of the voucher.
What about a Christmas Bonus?
Yep, taxed in the same way as wages and salaries. Bonus payments are still liable for national insurance and certain tax obligations this includes both cash and non-cash bonuses.
We are all getting into the christmas spirit here at Salter and Weare and want our clients to enjoy the giving season without getting "wrapped up" (Sorry) in red tape. Be Merry, Stay Bright!
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