Christmas time is the time for gift giving, but as a business it’s important to remember what is deductible for tax.
As your Nelson and Marlborough based Chartered Accountant here’s our guide to treating your staff:-
- Let’s start with a good old fashioned knees up, if you are giving your staff a Christmas party, remember only 50% of the cost is deductible.
- If you’re giving your team Christmas gifts, these are fully deductible, but will be subject to Fringe Benefits Tax
We’re pretty sure you won’t be leaving your loyal clients off the Christmas list this year:-
- Gifts to your clients are deductible under marketing and promotion, however…
- If you choose to take your clients out for a meal this is only 50% deductible, as are food and alcohol gifts