Income Tax
The question
To ask the Chancellor of the Exchequer, what guidance (a) her Department and (b) HM Revenue and Customs has produced on income tax liability where employees claim expenses for personal gifts (i) with and (ii) without the employer’s knowledge of that gift.
Answered by James Murray
The normal rules for employment-related benefits apply to employment-related gifts, as set out in HMRC’s guidance at www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim20020
There is an exemption for small gifts received by employees costing a total of £250 or less per year to provide, HMRC guidance can be found at https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim21715
No tax relief is available for the purchase of personal gifts by employees under the normal rules for employment expenses, HMRC guidance can be found at https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim31630
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