Tax tips for freelancers and small businesses over the festive season

November 13th, 2023

Christmas is a time for giving, but it's also important to be aware of the tax implications of your generosity. Here are some useful things to know for UK freelancers and small businesses over the festive period:

Buying clients Christmas presents

If you're buying Christmas presents for your clients, you can only claim tax relief if the gifts are:

If you do give gifts to clients, you'll need to keep records of the cost of the gifts and the names of the clients you gave them to.

Buying employees Christmas presents

You can give your employees Christmas presents without having to pay tax on them, as long as the value of each gift is less than £50. If you give them a gift worth more than £50, you'll need to pay tax on the excess amount.

Tax deadlines

The deadline for filing your self-assessment tax return is January 31st each year. If you're a freelancer or small business owner, you'll also need to pay your estimated tax payments quarterly. The quarterly deadlines are April 15th, June 15th, September 15th, and January 15th.

Staff Christmas nights out

If you're paying for your staff to have a Christmas night out, you can claim the cost as a business expense. However, there are some restrictions on this deduction. For example, you can't claim the cost of food and drink that is consumed during the night out.

Here are some additional tips for freelancers and small businesses:

By following these tips, you can help to ensure that you're on top of your taxes and that you're not overpaying. This will give you more money to enjoy the festive period!