Make the Most of the Giving Season
Truly embracing the festive spirit, December is when a lot of companies treat their staff
and give a bit extra to not-for-profit organisations. If you’re planning on doing this, you
need to be certain that you’re giving in the most efficient and tax-effective way. To
simplify the process, we’ve put together some tips on how to give more without
breaking the bank.
Gifts for employees
Your staff help you to make your business a success, so we’re sure that showing your
gratitude through a Christmas gift will go a long way. There also won’t be any tax
liability on the employee’s part, providing that you stick to the following conditions:
- The gift is not in the form of cash or a cash voucher
- The gift does not exceed £50, or an average of £50 per employee if different
- gifts are given out
- The gift is not part of a contractual agreement or in recognition of a specific service performed by the employee
A good example would be if you give your employees something along the lines of a
nice bottle of wine, a Christmas hamper, a box of luxury chocolates or anything else
priced £50 or under, which is given as a festive gift rather than a bonus for
achievements dating earlier in the year.
If you’d like to encourage your staff to support charities on a long-term basis, payroll
giving allows them to do so straight from their gross salary, which comes with
immediate tax relief. There are many payroll giving schemes available and they usually
offer the options to give directly to the charity or add to a staff charity fund.
When most or all of the staff within a business give regularly in this way, there are
multiple benefits to be enjoyed by all. For instance, the company can meet CSR
objectives and perhaps gain some positive PR, whilst the employees know that their
donations are going to a worthy cause of their choosing automatically every month.
Meanwhile, the charity or charities selected by your staff receive regular income
without having to worry about claiming Gift Aid, as they receive the donations before
tax is deducted.
If you’re interested in getting the new year off to a good start by setting up payroll
giving in 2020, contact us today.
No matter where you’re based, there will always be an event, festival, sports team or
another type of activity looking for corporate sponsorship. Whilst this can be an
excellent way to support a cause and receive a range of benefits, there are a few
factors to bear in mind:
- Are the benefits worthwhile and in line with your target audience?
- Is the event/festival legitimate? Everything should be thoroughly researched beforehand and all subsequent correspondence kept for future reference.
- Be wary of sponsoring causes in which you or a family member are already involved. If you have a personal connection to the activity, HMRC may decide that it is not tax-deductible.
Don’t let these factors put you off though – give TreyBridge a call and we’ll help you
to choose a sponsorship package that suits both parties.
We’re here to help
At TreyBridge Accountants, we don’t simply look after your financial figures, we’re also
dedicated to helping you to grow in size, achieve sustainability, and improve your CSR
activity through cost-effective giving. If you’re interested in finding out more, get in
touch with our friendly team on 01482 235575.
Government announces pay rise for 2.8 million people National Living Wage set to increase by 6.2% in 2020. – Annual pay rise of up to