Gifts to employees for birthdays and other occasions are considered personal, non-business expenditure and must not be claimed via expenses.
Tax treatment for gifts and individual recognition
This table forms part of the Employee Expenses policy. Any deviations from the policy must adhere to the key principles and be authorised by the Head of Institution. Where appropriate, any claims must also align to the funder’s terms and conditions.
| Expense category | Allowable expenses | Guidance / additional information |
|---|---|---|
| Gifts to employees | As a rule, gifts to employees are to be funded by local staff collections.
Exceptionally, token gifts to mark milestone events in employees’ personal lives may be provided, typically a card and/or flowers. |
Milestone events include birth of an employee’s child, engagement, marriage, extended illness/injury, sympathy, and condolences (relating to the death of an immediate family member) and milestone birthdays.
>This excludes retirement or leaving gifts as these arise “by virtue of employment.” |
| Recognition (individual) | Where, by exception, recognition is provided locally, this should be incurred by the institution rather than claimed by an individual employee, on the recipient’s behalf. | For long service awards, email HR Life Events and Leave Team. |
| Gifts to third parties (i.e., non-employees) | Where the University provides a gift to a third party, provided the item was not expected and is modest in value (i.e., less than £50) it will be a business gift. | Follow the specific guidance within the University’s Policy against Bribery and Corruption. |
