Small gifts to employees up to £50 per person per year are often tax-free if they are not cash or vouchers.

Gifts to clients for promotional purposes, like branded pens or calendars, under £50 are usually deductible.

Seasonal gifts, such as Christmas hampers, can be tax-free if they are modest and given to all employees or clients.

Long service awards for employees after 20 years of service, up to £50 per year of service, are exempt from tax.

Gifts of trivial benefits to employees, like birthday cakes or team lunches, under £50 per incident are often allowable.

Charitable donations made in the name of the business are deductible, but not gifts to individuals.

Gifts of alcohol, tobacco, or vouchers exchangeable for goods have stricter rules and may be taxable.

For directors or higher-paid employees, the trivial benefit limit is £300 per year, but check current HMRC thresholds.

Gifts that are part of a salary sacrifice scheme need careful handling to avoid tax implications.

Keep records of all gifts given, including dates, recipients, purposes, and values, for HMRC compliance.