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Claiming Tax on Staff Christmas Gifts

Dec 08, 2019
Claiming Tax on Staff Christmas Gifts

Transcript:

Ross Forrester: 00:04 Hey everyone. I’m Ross and I’ve got Nick here with me. Coming up to Christmas and a lot of people want to give their staff and their team a little reward as a thank you for doing a good job and if you give your staff a bonus as a cash bonus, they’re going to pay tax on it, which is not such a great idea. So we’re sort of talking about ways that you can give someone a little bit of a thank you recognition for their efforts and not include tax.

Nick Jefferies: 00:30 A common way for employers to reward their staff members is to give them presents such as a hamper, gift card, bottle of wine. As long as it’s [inaudible 00:00:43].

Ross Forrester: 00:47 And the staff member wine pay fringe benefits tax. If you do give your employees a gift in the form of entertainment, say concert tickets, basketball tickets, if you consume the alcohol with them so that you’re actually getting entertainment as opposed to a gift, then the gift will become non-deductible. But if you just give a straight gift as a Christmas hamper or something like that, or a gift card, you will get a tax deduction for it. Structure up your gifts properly and it’ll be tax effective binging and tax effectively start member. Cheers guys. Thanks.



Category: Family Owned BusinessFinancialTaxVlog

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