How to pick the perfect corporate gift
When you have your own company, or you’re part of a corporate working environment, things can get pretty hectic. But, with Christmas on the horizon, it’s vital that you take some time out to think about corporate gifting and how you can ensure you’re picking the perfect items for your clients and employees.
So, if you regularly find yourself struggling to pick the perfect corporate gift, we’ve rounded up our top tips to help you become a natural.
Consider tax rules and regulations
Before you set and finalise your budget, it’s key to note that while most gifts are considered as ‘entertaining’, some will be eligible for tax relief. To qualify, the item must be presented to the client or employee with no obligation attached. And, it must also bear a conspicuous advertisement to your business. But, be aware that food, drink, tobacco and vouchers aren’t permitted for relief.
If a client gift exceeds £50 in a single gift or with a series of gifts, this must be declared to HMRC as it’s taxable. However, be aware that this isn’t the case if the item you’re gifting is a sample from your own company.
When it comes to gifting employees, all gifts are taxable. But, you may spend £150 annually on hosting staff events like Christmas parties. This doesn’t necessarily mean spending the full amount in one go and instead can be spread across the year. If you exceed this, the whole amount will then be taxed. For more information on gift taxing, visit the HMRC’s business income manual.
Stick to a budget
As an entrepreneur or business owner, you’ll know how important it is to stick to budgets, whether they’re ones that you’ve set yourself or that have been set for you. And, corporate gifting is no different.
There are many different ways you can set your gifting budget, whether you decide on a total amount and divide it among clients, or you set a budget to each client. However, be aware that it may not be necessary to set the same amount aside for each person or company. Those clients which invest more money and time with you may require a larger spend than a smaller client who doesn’t bring as much financial support to your business.
Whatever way you choose to set your budget, just make sure you aren’t tempted to divert from it: even a couple of pounds here and there can completely throw you off track and rack up quite a big bill!
Choose an appropriate gift
It’s unlikely you’ll choose anything inappropriate when you’re trying to show your appreciation to your client or employees but picking a gift that’s relevant to their business interests is bound to win you some extra brownie points. For instance, if your client is a catering company, getting them a luxury hamper, like ‘Bottled & Boxed’ ones is sure to be welcomed , whereas if they’re a printwear company, something personalised will show your appreciation towards their business. Plus, in some circumstances, choosing a related gift may be necessary to avoid paying tax on your gift.
If you’re buying for a whole team or small company, finding something that they can share or do together will show equal appreciation for everybody. This could include planning an experience day (Experience Days do great selection of activities for the whole team to get involved with) or gifting them a voucher to spend on something for their office.
Don’t overdo it
Apart from avoiding paying tax on your business gifts, you’ll also not want to overdo it at risk of looking showy. Instead of planning a grand entrance for your gift, your client is sure to appreciate a subtler receival, particularly if it’s just for one person.
It’s also important that you don’t splash too much cash on your clients, as this may pressurise them to do the same for you, whether they can afford it or not. As a general tip, it’s much better to give a thoughtful gift rather than spend buckets of money on one that’s not as good.
Long gone are the days of stressing over corporate gifts. With our top four tips, a good relationship with your clients and some imagination, you’ll soon be a pro at picking presents.