insideKENT Magazine Issue 57 - December 2016 | Page 189
BUSINESS
ALL I WANT
FOR CHRISTMAS…
IS A THANK YOU
by Paul Nixon of Wilkins Kennedy
IT’S THAT TIME OF YEAR AGAIN AND AS THE CHRISTMAS HOLIDAYS
START TO APPROACH, MANY EMPLOYERS WILL BE THINKING ABOUT
WAYS THEY CAN GIVE THANKS TO STAFF FOR THEIR HARD WORK OVER
THE PAST YEAR. IF YOU DO DECIDE TO OFFER A LITTLE SOMETHING
EXTRA, THEN THERE COULD BE SOME TAX ADVANTAGES TOO.
Of course, the Christmas period is not all about
winding down and planning staff parties. Plenty
of businesses experience an influx of activity to
accommodate a busier season, either because
that is the time of year when their products and
services are in high demand, or holidays planned
at the end of the December make it a shorter
month – so there is plenty more to do over the
available working days.
Whatever the reason, your staff are pivotal to the
success of your business, both at Christmas and
the whole year through – so it is of little surprise
that employers want to thank them by the time
December comes around. This doesn’t have to
be a financial gain, but employers and employees
alike will be wondering what it could be that
would represent a little extra something to say
thank you and whether or not their hard work
will go unnoticed by their employers.
Christmas rewards are a great morale booster
but when January rolls around and your staff
come back in to work with a severe case of the
holiday blues, it’s at that point it becomes
important. Returning on 3rd January knowing
that you are appreciated and that your boss is
happy with what you are doing, will go a long
way to showing that they are valued. In turn, it
could help ensure that your staff continue to do
the amazing job that they were doing before the
holidays came around.
Gift giving is probably the easiest way employers
can reward their hard-working staff at Christmas.
HMRC will allow you to give a gift up to the value
of £50 to any one person during that tax year,
on the condition that it is a business gift – a diary
or stationery for example. If you decide to
purchase non-VATable items, such as food, you
do not have to account for VAT as long as that
gift does not exceed £50.
Think about what might have the greatest impact
on your employees and think about spreading
the reward out over December and January if
that is possible – rewarding your loyal staff is
something you should do over the whole year
as a matter of good staff relations.
You could also consider holding a party for staff.
It would boost morale and bring everybody
together but the great news is that the taxman
will also let you enjoy the party tax free. Normal
business entertainment of clients or other external
contacts does not enjoy any tax advantage, but,
when you are providing entertainment for your
employees, things change. The taxman regards
this type of expense as a ‘business purpose’
and the costs involved can all be treated
accordingly.
Many companies are now recognising the
ongoing importance of staff reward schemes,
and the positive impact they can have on a
business. A well thought out and implemented
scheme should not be the last word as it’s always
the personal touch that matters more. A quick
thank you or a well done goes a long way.
But note that this applies strictly to your staff and
your staff only. If external guests are invited or,
more likely, if your staff can bring spouses or
partners to the festivities, you get back into the
world of business entertainment and you need
to start dividing up the costs so that you only
claim back on the proportion that has been spent
on your staff.
Whilst staff parties and gifts provide short-term
appreciation, actions can speak louder than
words. A recent survey conducted by Eden Red
showed that only 37% of employees receive any
kind of thank you from their manager, but just a
simple thank you costs nothing and it can really
go a long way. After all, a Christmas gesture
might be appreciated at the time, but once
January comes around it will be forgotten.
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If you would like to know more about how you
can say thank you to your staff this Christmas,
and throughout the year, plus enjoy a few tax
advantages, why not contact Wilkins Kennedy
to see how we can help. Email Partner, Paul
Nixon, at [email protected] or
call on 01233 629255.
www.wilkinskennedy.com