christmas staff and suplliers gifts and bonuses

COOLTRIKERCHICK

last year i gave my suppliers some christmas gifts, rangeing from a tin of sweets to some booze....

i must admit some of them were suprised, and said they thought the days of gift giving between businesses were gone...

so i will be doing the same again this year,

also this year i have staff, so was wondering what type of christmas bonus would be good.

money ? how much?

booze? what?

supermarket/gift tokens ?

i have a people were are married with young children, and i have a single bloke who loves clubbing etc..

so i was thinking money, but dont know how much....

what christmas bonus do you give?

cally6008

Married person with young children may appreciate supermarket gift card

Single bloke going clubbing may appreciate a drinks type gifty set (the sort with glass and small bottle of booze in it)

Rolo_Tomasi

There are a couple of issues here:

1. Gifts to customers/suppliers. These are not allowable for tax purposes. If you are a sole trader they will go to drawings. If a Ltd Company then they get added back in your tax computations. If these gifts have a monetary value (ie a gift card) then it could become taxable on the recipient.
2. The main exception to the above is if the gift is heavily advertised with your name/logo etc. Then is may be treated as an advert and is allowable for tax so long as it is not food/drink or a cash voucher.
3. Any cash/cheque/voucher payments to your staff should be taxed as salary.
4. You can take your staff out for a Christmas meal and spend upto £150 per head with no tax issues (ie you get full tax relief on the expenditure, your staff have no tax to pay).