As the time comes for corporate gifts, we look at what’s most popular and what legislation you need to be aware of.
In the news, the Government has announced an extension to its broadband voucher scheme and there’s a debate about the impact of the new EU VAT changes.
Top news stories
The changes will require an estimated 200,000 small British businesses that sell their products abroad to register for VAT for the first time on 1 January 2015.
Government extends broadband voucher scheme until 2016
The government has extended its Connection Voucher scheme, which is designed to help small and medium-sized enterprises upgrade their broadband. Grants worth up to £3,000 are available to small firms across 22 major UK cities.
British workers suffered biggest real-wage fall of major G20 countries
According to research by the International Labour Organisation, British workers suffered the biggest drop in real wages in the three years to 2013.
Small business retailers miss out on Christmas spending
New research shows that 50% of UK shoppers are set to switch to larger retailers for Christmas presents, with 39% of small retailers believing they'll lose out. Price and product range are the key drivers of spend.
UK small businesses not ready for “Wear your own device”
Less than half of small businesses have a ‘Bring Your Own Device’ (BYOD) policy in place that can be extended to cover wearable devices.
Key dates for your diary
One change this week:
8 December: Marriage (Same Sex Couples) Act 2013 (Consequential and Contrary Provisions and Scotland) (No.2) Order 2014 comes into force
The regulations change legislation, especially in connection with pensions for people in same sex marriages. More information is available on the Government website.
The top Christmas gifts given by businesses
As we approach the final weeks of Christmas, what might you expect in your work Christmas shopping? Will you receive any gifts from suppliers and if so, what should you check before you start tucking into those chocolates?
And if you’re in charge of giving gifts to your customers, what should you buy. We answer these questions.
What’s appropriate?
The first thing to find out is what your company’s policy is for gift giving. Do you have a standard policy? Many companies will give presents to their customers but you need to be aware of the bribery laws.
The Bribery Act 2010 means it is illegal to offer, promise, give, request, agree, receive or accept bribes. Some businesses include gifts in this policy and either don’t accept them or set a limit to the level of gift that can be received.
It’s important that your gifts are appropriate and proportionate - as long as they don’t cost more than £250, the recipient won’t need to pay tax on them. Finally, make sure that they really are a gift - a thank you for their custom rather than a way of encouraging clients to book new work.
More information on the bribery laws are available on the Government website.
The top gifts
So what do others do? Research by American Express shows that the top gifts given to business contacts are:
That may give you some ideas for your business - or ways to stand out.
Gifts for employees
Any cash bonus at Christmas will be taxable. This also applies to vouchers.
This year, gifts such as turkeys, bottles of wine or boxes of chocolates aren’t usually taxed. However, HMRC says this only applies if the cost is reasonable - and they haven’t defined what this is.
The rules are clearer from 2016, when employers will be able to give employees tax-free "benefits" - not cash - of up to £50 a year.