You know Christmas is just around the corner when the stores are filled with discount Halloween costumes and an abundance of Christmas trees.
The countdown is on to the end of the year. The end of this DECADE in fact! You want your 2019 to go out in style. You want your staff to feel appreciated and your clients to feel valued.
November/December is such a busy time of the year with sundowners, gatherings, Christmas lunches, parties and drinks invitations filling your inbox faster than you can empty it. Do you give your staff and clients gifts or do you throw another party to an already full schedule adding more pressure?
Look, holding a Christmas party is a nice idea, but the cost of holding a Christmas party and is regarded as entertainment, therefore it is not tax-deductible.
For this very reason alone, you should give your staff or clients Christmas gifts, rather than entertainment this year.
Along with showing your employees how much they are appreciated, Christmas gifts are tax-deductible.
According to the Australian Taxation Office (ATO),
“The provision of a gift to an employee at Christmas time may be a minor benefit that is an exempt benefit where the value of the gift is less than $300.”
So what this means exactly, is that if your gift per individual is less than $300, it is a tax deduction for your business. This is regardless of whether it is a staff gift or client gift.
When giving staff or client gifts this Christmas, you may want to take into account:
- The amount you spend per gift (keep it under $300)
- The type of gift – gifts such as our Gifting Pots, wine or vouchers is treated differently to entertainment gifts like movie or sporting tickets.
- Who you are giving the gift to? There are different rules for employees and clients /suppliers to consider.
Christmas gift-giving for your staff or clients shouldn’t become an added pressure to an already busy time of the year.
It may be lovely to host a party for your staff or clients, but it can also be a non-tax refundable headache. If you are unsure, we suggest that you seek advice from your accountant or qualified tax professional.
We can help arrange your staff or client Christmas gifts with customised unique, sustainable Gifting Pots, or click here to shop our ready made Gifting Pots.
Do you want to organise gifts for your staff or clients?
Why not let us at The Gifting Pot take the stress out of your Christmas giving with our effortless gifting solutions. We have a range of Christmas Gifting Pots available, or you may like to customize your own.