So Christmas is around the corner and the geese are being fattened, but before the big day, you are probably thinking about who’s been good to you this year and what to give them.
It is the season of goodwill, but don’t be too generous… or the taxman may come knocking….
If you own a business, you will probably want to reward your staff for their hard work throughout the year, you may be planning a ‘Christmas do’, or planning to slip them an extra something, or even both.
So what can you do which is tax efficient?
- Staff Christmas do – Up to £150 per head tax free. Partners can be invited who have their own £150 limit too. Don’t go over the limit which includes all costs; transport, drinks, VAT etc.
- Staff gifts – You can spend up to £300 per employee per year tax free but no more than £50 at any one time. Avoid cash as this is treated as extra pay but most gift cards are fine as long as they are not convertible into cash, i.e. change being given.
- Customer and supplier gifts generally don’t get tax relief unless they are under £50 and contain a business advertisement. Gifts of food, alcohol and tobacco never qualify for tax relief.
- Cash gifts will always be fully taxable as though it is salary
However, many of you will not have a business and will only need to buy for friends and family, so are there any restrictions for you?
In short, don’t be too generous or else the taxman may come knocking!
- You can give any number of people up to £250 every year
- You can spend as much as you like on your better half as long as you’re married or in a civil partnership (Don’t shoot the messenger…)
- There are other exemptions which are a little complex to explain in this short article
Gifts over the limits may have Inheritance tax or capital gains tax implications!
Introducing our new manager – Ian Walling
Having worked in both small local and large international accountancy firms prior to moving to MJH, I am fortunate to have accumulated 10 years’ experience working with a variety of clients. The decision to move to MJH Accountants was heavily swayed by how impressed I was with the business structure put in place by Mark as well as the future prospects for the business.
It is my aim to assist Mark in not only delivering an excellent service for clients but to assist in growing the business further. You will know doubt come to know me well as I introduce myself personally to many of you.
In the short time I have been here, I have thoroughly enjoyed my time at MJH and I am impressed by the team Mark has put together. We have a friendly and approachable attitude and this helps us give clients the best service possible.
I very much look forward to meeting new clients, bringing in some of my own, helping the business grow and reach its full potential.
A message from Mark
It has been another busy month at MJH and I am delighted with how things have gone.
Amongst other achievements, we have welcomed another new member to our growing team, gained a number of new clients and also hosted the MJH Christmas party.
Ian Walling, a Chartered Accountant with 10 years’ experience has joined MJH from RSM who are a Top 10 firm in the UK.
Ian has put the move into his own words above, but from a personal perspective, I am thrilled that he has joined us here at MJH; to attract such a talented individual from a firm ranked 7th in the UK is a staggering achievement and bears testament to what we are trying to achieve here at MJH and the way we go about our business.
In the last 4 weeks alone, 11 more people have chosen MJH to help them manage their accounting needs and grow their businesses.
As usual, the majority of these new clients have been referred to us by those already using our services which is a constant reminder that in the vast majority of cases, we are exceeding our clients’ expectations.
Last week, we hosted the MJH Annual Christmas party which has a very important charitable aspect too; in recent years we have raised around £1,000 from the event for our chosen charities, however, this year we were hungry for more.
After careful consideration, we chose two charities, The NW Air Ambulance and Keeping Kate.
The Air Ambulance needs no introduction other than to say, we all hope that we’ll never require their services but if you did, we hope to God that they can help, and to do this, they need to raise around £7m per year.
Keeping Kate is raising money to help fund a local lady’s fight against breast cancer. Kate’s only realistic hope is to undergo private hospital treatment in Germany which is obviously very expensive and we are doing our bit to help.
Over 120 of our clients and working partners enjoyed the event last Thursday and thanks to their generosity and that of the local businesses who contributed raffle and auction prizes, we raised over £1,700.
As usual, MJH are closed over the Christmas period; the office will close at 5pm on Thursday 21st December and reopen at 8am on Tuesday 2nd January 2018 when we will all be refreshed and ready to embrace our busiest month of the year.
Finally, I would like to wish you all a wonderful and peaceful Christmas and New Year, please take the time to enjoy this festive period with your families and loved ones and we’ll speak to you in the New Year.
Thank you for reading.