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Documents for Business
In excess of 1,000 customisable documents covering every conceivable business issue.Introduction to this document
Employee personal appreciation gift letter
There are very few circumstances in which an employee can receive tax-free cash from an employer. But a gift made “on personal grounds” or as a “mark of appreciation” might be one of them. How do you go about proving this to the HMRC’s satisfaction?
A personal gift
Where cash paid to an employee is a genuine gift in recognition of some personal quality, and is in no sense a reward for performing duties past, present or future, then it can be paid tax-free. HMRC’s instructions (EIM01460 - Employment Income Manual) suggest that to escape liability, possible reasons for the gift might be: “on personal grounds, e.g. a wedding present, or as a mark of personal esteem or appreciation”. Always keep a copy of the covering letter with any such payment to provide evidence, if required, to HMRC. Our Employee Personal Appreciation Gift Letter will serve this purpose.
