Gifts of flowers

In the latest issue of the Inland Revenue's Working Together magazine, the approach taken by tax inspectors to gifts of flowers for employees on sick leave has been restated. In principle, such gifts are reportable as they are provided by virtue of the employment. Where the amount of money involved is small, inspectors are encouraged to "exercise discretion and a sense of proportion".

In any event, there cannot be a tax charge on such gifts given to lower-paid employees, i.e. those with an earnings rate of less than £;8,500, as any charge would be based on the second-hand value of the gift. Also, in principle, a gift is not earnings from the employment if it is made on personal grounds or as a mark of personal esteem or appreciation. (Schedule E Manual, SE1460)
(Source: www.inlandrevenue.gov.uk/workingtogether/publications/wt_14.pdf )
...back to 26 September 2003