Tax Free Gifting

Under current UK law, all employees are entitled to £50 tax-free gifts for non-performance related reasons.

Celebrate All Occasions with Tax-Free Gifting

Each Person offers an innovative way for businesses to reward their employees through tax-free gifting, utilising the £50 trivial benefits allowance. This scheme allows employers to give meaningful rewards for non-work-related events without the hassle of taxes or National Insurance contributions, making it a cost-effective solution for both the company and its employees. With the use of employee vouchers, Epoints, and Each Peron’s Shop products, there is the perfect gift for everyone.

What Are the Rules for Tax-free Gifting?

Tax-free gifting is a simple yet impactful way to celebrate milestones, birthdays, or even to say thank you for a job well done. With Each Person, businesses can send personalised, tax-free rewards directly to employees, ensuring that the gesture feels thoughtful and unique. To ensure your tax-free gifts are complaint the following rules apply:
• The gift value must be no more than £50
• The gift cannot be given through payroll or cash
• The gift cannot be a contractual agreement
• The gift can’t be rewarded against performance

Save Your Business Valuable Time and Money

Tax-free gifts are simple, powerful and can be easily administered using Each Person due to having to choose the ‘reason’ from a set of options which categorises how recognition and rewards are given. This way of administering workplace rewards gives employers a full audit trail of their tax liability which is a huge benefit when completing PSA agreements for HMRC. Employers save time but crucially can save thousands of pounds each year due to how they classify their rewards making them tax-free.

Interested in Learning a Little More?

As an employer within a business, you might need to report any expenses or benefits you provide to employees. You may also need to pay tax and National Insurance on them. See a full A-Z breakdown from the official Gov website here.

Are you self-employed? If so, you do not have to report, pay tax or National Insurance on personal gifts (such as birthday or wedding presents) that you give to your employees
‍
To view a full breakdown of information regarding gifts to employees for businesses and self-employed organisations, click the link below:
https://www.gov.uk/expenses-and-benefits-gifts-to-employees