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How Businesses Can Save Money On Tax By Gifting a Virgin Incentives Gift Card

Following the recent launch of our multi-choice gift card, let’s talk about a little something that’s not only going to spread joy among your employees or customers but also save you a pretty penny on tax – yes, you heard that right! We’re diving into how businesses can save money on tax with their gifts, and our star of the show? The one and only Virgin Incentives Gift Card.

Save more and give more with gift cards as trivial benefits

Back in April 2016, HMRC introduced trivial benefits. This nifty little concept allows businesses like yours to gift employees small everyday perks – think birthdays, seasonal gifts, and more – without shelling out for tax or national insurance. Enter the realm of tax savings, my friends! Giving gift cards or vouchers as a trivial benefit can be used to your advantage because it’s much simpler to distinguish between them and non-trivial benefits. Gifts that go through payroll can cost you up to £26.90 extra per employee in tax and national insurance whereas a £50 trivial benefit costs nothing extra as long as it’s recorded correctly. You just need to ensure the trivial benefit follows the rules. 

Ensuring your benefits qualify for exemption

Before you go popping champagne, let’s lay down some ground rules. The benefit cannot be given as a reward for a service in order to be eligible. For example, giving an employee a ‘well done’ gift for hitting a sales target will not fall within the scope of the exemption, even if the gift costs the employer £50 or less. It is important to note, if an employer tops up a gift card with less than £50 a few times a year and meets the other requirements, it is understandable why they would feel certain that the trivial benefits exemption is valid. However, HMRC’s strategy treats the gift card as a single benefit and looks at the entire amount put on the card in the tax year; if this is more than £50, they believe that the trivial benefits exemption does not apply. Here are a few other rules to follow:

  • Each benefit must cost £50 or less per employee.
  • No cash payments allowed – that includes vouchers for cash!
  • Can’t be a reward or incentive – keep it genuine, folks.
  • Should not be part of a salary sacrifice scheme.
  • Should not be mentioned in the employee’s contract as a perk, i.e. it’s not a benefit-in-kind.
  • Directors of ‘close’ companies shouldn’t exceed £300 per year.

Can I give the Virgin Incentives Gift Card as a trivial benefit?

Now, let’s talk about the real hero of the story – the Virgin Incentives Gift Card! This little gem isn’t just any old gift card; it’s your ticket to tax-saving bliss. Why? Because it’s much simpler to distinguish between trivial benefits and non-trivial benefits when you’re handing out gift cards.

If you are looking into how businesses can save money on tax, the Virgin Incentives Gift Card can and should be given to your team members as a trivial benefit rather than as a benefit-in-kind when it comes to special occasions like their birthdays or Christmas. There are plenty of occasions where you can give your employees a Virgin Incentives Gift Card, up to the value of £50, and record it as a trivial benefit. Examples include:

  • New baby gifts
  • Housewarming gifts
  • Out of office refreshments- coffee and teas
  • New work attire purchases e.g. for work events or pitches
  • Easter gifts
  • Wedding presents
  • Onboarding or farewell gifts
  • Anniversary gifts- but not work anniversaries as this is deemed as a reward
  • Lunch, dinner or drinks with co-workers

Why Choose the Virgin Incentives Gift Card?

When finding ways to see how businesses can save money on tax, it’s clear to see that gift cards are pretty handy for trivial benefits. So, you might be wondering, why choose the Virgin Incentives Gift Card over any old gift card? Well, let me tell you:

Versatility: With over 100 top UK brands to choose from, your employees or customers can pick their perfect gift from a wide range of brands and partners. Talk about options galore!

Ease of Use: Whether it’s a physical or digital card, the Virgin Incentives Gift Card is a breeze to use. Simply browse, swap, and shop – it’s that simple!

Exclusive Brands: We have over 15 exclusive brands which sets the Virgin Incentives Gift Card apart compared to other multi-choice products. Our exclusive brands include the likes of Airbnb, Swarovski, Premier Inn and the Merlin attractions.

Making Tax-Saving Magic Happen with Virgin Incentives Gift Card: Real-Life Scenarios

Now, let’s dive into some real-life scenarios where the Virgin Incentives Gift Card can be used as a trivial benefit, showcasing some of our fantastic partner brands:

Home Décor Delights with Ikea: Is a team member moving into a new home? They can swap their Virgin Incentives Gift Card for an Ikea gift card for their housewarming – the perfect way to help them turn their house into a home.
Indulge in Luxury with John Lewis: Celebrating Christmas with your colleagues? Treat your employee to a shopping spree at John Lewis with a Virgin Incentives Gift Card, allowing them to pick out something special to mark the occasion.
Fuelling Creativity with Hobbycraft: Got a creative colleague who loves DIY projects? Surprise them with a Virgin Incentives Gift Card for their birthday which provides access to Hobbycraft, giving them the freedom to explore their passions and hobbies.
Tech Treats at Currys: Need to upgrade some of your employees’ devices to help with their job? Give them the gift of tech with a Virgin Incentives Gift Card which can be swapped for a Currys gift card, allowing them to upgrade their gadgets or splurge on the latest tech accessories.
New clothing with Asos: Do any of your colleagues need new formal clothing for attending a networking event? Let them choose some new attire with an Asos gift card via the Virgin Incentives Gift Card, giving them the freedom to update their wardrobe with shiny new formal attire.
Work trips with Airbnb: Planning a team-building retreat or need to send an employee to an overnight event? Gift your employees a Virgin Incentives Gift Card which they can swap their balance over to an Airbnb gift card, allowing them to book a cosy cabin retreat or convenient city accommodation for their work event.

From home essentials to tech gadgets, fashion finds to travel adventures, the Virgin Incentives Gift Card opens up a world of possibilities for your employees. With our wide range of partner brands, you can easily tailor your gifts to suit any occasion and budget, all while enjoying tax savings. It’s the gift that keeps on giving – to both your team and your bottom line!

How to Make the Most of Trivial Benefits

Now that you’re armed with the knowledge of how businesses can save money on tax using gift cards, it’s time to put it into action! Give your employees a Virgin Incentives Gift Card for special occasions like birthdays, Christmas, new baby gifts, and more. The possibilities are endless, and the tax savings? Well, they’re just the cherry on top!

So, what are you waiting for? Start saving money on tax while spreading joy with the Virgin Incentives Gift Card today. Your companies wallet – and your team – will thank you for it! Get in touch with us below to make an order:

So what are you waiting for?
Let’s get talking!