• 94% retail businesses missing out on tax exempt gifts for staff

        • An increasing number of bosses within the retail sector would like to regularly gift their staff but feel limited by budgets, according to new research.  

          However, only 12 per cent of retail employers are aware of the government allowances that would allow them to give tax-exempt gifts, allowing them to more regularly give small gestures of goodwill to boost staff productivity and morale.

          A survey of 1,500 UK workers and business leaders by One4all Rewards, as part of a campaign to raise awareness of HMRC’s Trivial Benefits Allowance, revealed that 82 per cent of retail bosses would like to give regular bonuses and tokens to their employees in a bid to boost employee morale, motivation and loyalty.

          66 per cent of retail business leaders said that they do not currently give their employees non-performance related benefits because the business does not have enough budget and cannot afford them.

          In 2016 HMRC made changes to workplace benefits rules to allow businesses more flexibility to benefit from the exemption - reducing tax and National Insurance Contributions charges. However, only 6 per cent of retail businesses are currently making use of the tax exemption on trivial benefits.

          The research revealed that 12 per cent of retail businesses are aware of the tax relief available on trivial benefits, with only 13 per cent planning to make use of them before the end of the current tax year.

          Despite the relatively small sums involved, the survey showed that receiving a gift of this kind would make them feel more loyal (48%), improve retail workers’ morale (44%) and even motivated to work harder (28%).

          What’s more, 64 per cent of retail workers said that tokens in the form of a gift card which allows them to treat themselves to a gift of their choice, would have the biggest impact on their attitude towards work.

          More than a third (39%) of retail workers stated that they would most appreciate a gift not linked to their performance at Christmas, 35 per cent would like to receive a gift after a particularly busy period at work and 33 per cent on their birthday.

          Alan Smith, UK Managing Director of One4all Rewards said, “there is lots of potential for retail businesses to offer non-performance related gifts to their staff under the latest HMRC changes to the workplace benefits rule.

          “The changes to the workplace benefits rule have been introduced to help businesses similar to those within the retail sector we surveyed, who have limited budgets to treat their employees.

          “We can see from the research that only a small proportion of retail businesses are currently making use of the tax exemption on trivial benefits, and only 13 per cent of retail bosses are intending to make use of the tax exemption before the end of their tax year.”

        • Stay up to date - Click here and register for FREE OEN online membership and enjoy unlimited access to a host of benefits including the exclusive members area of the website, downloadable business tools, current and back issues archive, priority breaking news alerts, weekly e news summary and the OEN app

        • Related Articles

        • 95% UK office workers struggle finding documents across the network

          95% UK office workers struggle finding documents across the network

          Tuesday 15th Jan 2019 by clareb
          At a time when UK businesses are readily championing digital investment, it is critical firms take this opportunity to address vulnerabilities in their digital infrastructure, notably sub-standard information handling and management. This is accordin...Read More...
          Eight ways to crush the career blues in 2019

          Eight ways to crush the career blues in 2019

          Tuesday 15th Jan 2019 by clareb
          January can be tough. A combination of debt, cold weather, time since Christmas, low motivation and failed New Year’s resolutions sees the most depressing day of the year fall on 21st January this year. And while we know Blue Monday is just a c...Read More...
          Brits as likely to ditch bacon as booze for New Year’s resolution

          Brits as likely to ditch bacon as booze for New Year’s resolution

          Wednesday 2nd Jan 2019 by clareb
          With 2019 now in full swing, many will be turning their thoughts to the year ahead and looking at what positive changes they can make in the New Year. Figures released today have revealed the UK is now as likely to give up on meat as it is alcohol, a...Read More...
                • About Us

                  OEN is the leading source of business news and information for buyers of office equipment, supplies and services within mid tier and up sized organisations. Our multi-platform approach delivers relevant, engaging and focussed content via our main printed magazine, bespoke guides and supplements, website, digital editions, apps, and newsletters with an unrivalled reach across the industry. A highly trusted and respected brand for many years, the print version of OEN last year celebrated its Diamond anniversary.

                  For our latest Media packs and more details on our range of services click here

                • View Latest Issue