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Holiday gift cards are a popular and thoughtful way to show appreciation to employees and clients—but did you know they can also have tax implications for your business? Gift cards are considered a form of taxable income, and depending on how they are distributed, you may need to include them as wages for employees or report them on a 1099 for non-employees. Here’s what you should know: Employee Gift Cards: The IRS considers gift cards as cash equivalents, which means they are subject to income and payroll taxes, even if the amount is small. Client Gifts: You may be able to deduct the cost of gift cards given to clients, but limits apply. Generally, the deduction is capped at $25 per recipient per year. Record-Keeping: It’s important to document all gift card purchases and distributions to ensure compliance and maximize deductions where possible. Cook CPA Group can guide you through the tax rules and help you strategize how to give generously while staying compliant. Let’s make sure your holiday giving doesn’t lead to unwanted surprises come tax season!

If you are a business owner with employees you are going to want to listen to this!! ⬇️ Do you know what a Trivial Benefit is? 🤔 A trivial benefit is a lesser known tax deductible benefit that Companies can provide to their employees💡 Basically it means you can spend up to £50 each time on an employee as long as it meets the following criteria: ✅ It doesn’t cost any more than £50. ✅ It’s not cash or a cash voucher but it can be a gift card. ✅ It’s not a reward for their work or performance. ✅ It’s not in the terms and conditions of their contract. There’s no definitive list of benefits that can be classed as trivial but if the benefit is less than £50 including VAT and meets all the other criteria it can be classed as trivial 💵 Trivial benefits are also tax-free to the employee so the employee doesn’t need to pay tax and national insurance through their PAYE 😄 I use trivial benefits as a way to thank my employees when they’ve gone above and beyond, shown a proactive attitude or increased motivation. We recognise two people each month , one is voted for by the team and the other I choose. They each receive a gift card worth £50 and they get to choose which gift card they want 🙌 It’s a nice way to recognise people that are trying a bit harder to help keep that motivation going 💪 If you would like a copy of our free guide on all the lesser known tax deductible expenses a company can claim, click on the link below ⬇️ https://lnkd.in/eE3rCK3H #landscapegardening #landscapebusiness #landscapebusinessowner #landscapers #landscapersofinstagram #landscaperslife #landscapers_of_instagram #sonesaccountancy #accountancy

Pssst… want to learn something on LinkedIn that you actually didn’t already know? Nice! Let’s dive into the wonderful world of the trivial benefit. ‘What’s that?' You ask. It’s a small gift or perk that an employer can provide an employee without incurring tax, National Insurance contributions, or the need to report it to HMRC (in the UK, at least). But for the benefit to qualify as a trivial it must meet certain criteria: ☝🏼1.⁠ ⁠The cost of the benefit must be £50 or under (including VAT) per employee. ✌🏼2.⁠ ⁠It cannot be a cash payment or a cash voucher. (HOWEVER - gift cards that can only be used in specific stores are ok) 🤟🏼3.⁠ ⁠It cannot be provided as part of a contractual obligation or as a reward for performance. 🤘🏼🤘🏼4.⁠ ⁠The benefit cannot be given as part of a salary sacrifice arrangement. We're talking: •⁠ ⁠🍾 A bottle of wine/box of chocolates for a special occasion. •⁠ 🍱 ⁠A meal to celebrate a company achievement. •⁠ ⁠🎁 A small gift card for birthdays or holidays. 🚨 Limits: For company directors/officeholders of close companies (typically small, family-owned companies), there’s an annual limit of £300 in trivial benefits. There is no overall limit for regular employees. By ensuring the gift meets these conditions, you can provide small tokens of appreciation without creating additional tax burdens. Go get your people something nice. 💝

🎁 Gift Cards, Taxes, and Holiday Confidence 🎄 The holidays are here, and it’s the perfect time to spread cheer with gift cards. They boost revenue, build loyalty, and show employees you care. But as you’re gifting, don’t let tax season sneak up on you! 💡 Here’s what you need to know to stay confident this holiday season: 🎁 Customer Gift Cards: A revenue driver—but remember, taxation depends on how and when they’re redeemed. ✨ Breakage Matters: Unused balances? They’re still part of your financial picture! 👩💼 Employee Gift Cards: A thoughtful reward, but they come with taxable considerations. Stay compliant and keep things merry! Check out our guide for actionable tips on managing gift cards and taxes like a pro. 👉 https://hubs.ly/Q02_8NR_0 Make your holiday season profitable, joyful, and worry-free. ✨

Employers see the reminder below that any Christmas gift card or voucher you give to your employees under the small benefit exemption scheme, now needs to be reported to Revenue under the Enhanced Revenue Reporting rules. Also the limit for this scheme remains at €1,000 for 2024. Please feel free to reach out should you require any assistance with your ERR filings. #ERR #ChristmasGiftCards #PayrollCompliance

#HolidayGiftCards #TaxableGiftCards #UserExperience Hey everyone! 🎉 With the holiday season just around the corner, I wanted to open the floor for some friendly venting. As we dive into holiday gift giving, it’s worth discussing something that’s been on many of our minds: holiday gift cards and their tax implications. 💳💸 Why is this a pain point? Navigating the world of gift cards can be a bit tricky, especially when you throw taxes into the mix! Here’s what many users are feeling: Confusion: Some people don’t realize that gift cards can be considered taxable income, leading to unexpected headaches. Unexpected Costs: If you're gifting a card that ends up being taxed, that can take away from the intended joy of giving! Lack of Awareness: Many consumers are simply unaware that certain rules apply, which can lead to frustration. Possible Solutions: While the situation can feel overwhelming, there are ways to manage it better: Educate Yourself: Familiarize yourself with the tax laws su... How Can You Navigate Taxable Holiday Gift Cards This Season? Answers:  https://lnkd.in/gqpSkRfw Let's Connect! Have you faced similar challenges? Share your insights and exper...

#HolidayGiftCards #TaxableGiftCards #UserExperience Hey everyone! 🎉 With the holiday season just around the corner, I wanted to open the floor for some friendly venting. As we dive into holiday gift giving, it’s worth discussing something that’s been on many of our minds: holiday gift cards and their tax implications. 💳💸 Why is this a pain point? Navigating the world of gift cards can be a bit tricky, especially when you throw taxes into the mix! Here’s what many users are feeling: Confusion: Some people don’t realize that gift cards can be considered taxable income, leading to unexpected headaches. Unexpected Costs: If you're gifting a card that ends up being taxed, that can take away from the intended joy of giving! Lack of Awareness: Many consumers are simply unaware that certain rules apply, which can lead to frustration. Possible Solutions: While the situation can feel overwhelming, there are ways to manage it better: Educate Yourself: Familiarize yourself with the tax laws su... How Can You Navigate Taxable Holiday Gift Cards This Season? Answers:  https://lnkd.in/gtGafSaK Let's Connect! Have you faced similar challenges? Share your insights and exper...

With many organisations finishing their financial year in April, it's the perfect time to start thinking about rewards and incentives for staff. In the competition for top talent, staying ahead is crucial. Why not offer something that puts your business ahead of the curve? With over 200 businesses who are registered to accept the card, Dundee Loves Local gift cards may just be the way to go. Employers in the area who reward staff with a Dundee Loves Local gift card can take advantage of the UK Trivial Tax Benefits scheme. A business can give an employee a benefit of up to £50 without paying tax, but only if the benefit isn’t in cash, a reward for their work or in the terms of their contract. Alasdair McGill, founder of Dundee based accountancy firm Ashton McGill offers advice on winning the war for talent: https://zurl.co/QSYR Ready to reward your team? Order your Dundee Loves Local Gift Card here - https://zurl.co/eiy7

Give yourself some gifts 🎁 From the business, of course 😏 Trivial benefits are random gifts to employees. You’re capped at £300 per tax year if you’re a director. There’s other criteria: ⏩️ The gift isn’t more than £50. ⏩️ It’s not been rewarded for work or performance. ⏩️ It can’t be cash or a voucher that can be exchanged for cash. ⏩️ There’s no contractual entitlement to it. Gift cards aren’t generally exchangeable for cash, so these are fine. My advice ⬇️ 👉🏼 Find 6 dates in the tax year 👉🏼 Set a reminder 👉🏼 Buy yourself a £50 gift card Your company gets tax relief on those, whilst you get £300 tax-free 🤩

#HolidayGiftCards #TaxableGiftCards #UserExperience Hey everyone! 🎉 With the holiday season just around the corner, I wanted to open the floor for some friendly venting. As we dive into holiday gift giving, it’s worth discussing something that’s been on many of our minds: holiday gift cards and their tax implications. 💳💸 Why is this a pain point? Navigating the world of gift cards can be a bit tricky, especially when you throw taxes into the mix! Here’s what many users are feeling: Confusion: Some people don’t realize that gift cards can be considered taxable income, leading to unexpected headaches. Unexpected Costs: If you're gifting a card that ends up being taxed, that can take away from the intended joy of giving! Lack of Awareness: Many consumers are simply unaware that certain rules apply, which can lead to frustration. Possible Solutions: While the situation can feel overwhelming, there are ways to manage it better: Educate Yourself: Familiarize yourself with the tax laws su... How Can You Navigate Taxable Holiday Gift Cards This Season? Answers:  https://lnkd.in/gHMQ_r55 Let's Connect! Have you faced similar challenges? Share your insights and exper...