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Rewarding staff at Christmas time…..

The tax rules are bonuses and gifts are quite complex, so you may want to check your ideas out with us first. Entertainment expenses are deductible, however you always need to watch out for fringe benefit tax (FBT). As a general guide;

• Christmas parties are  50% deductible
• Transport to the function is 100% deductible, but FBT could apply
• Lunches and morning teas are 100% deductible
• Christmas gifts and gift vouchers, providing they and non-food and drink 100% deductible
• Food and drink gifts are only 50% deductible and  FBT could apply
• Cash bonuses are to be treated as wages with PAYE deducted

Please contact us to check how you can best reward staff and claim it back.