Bosses can afford to provide more generous gifts for their staff this Christmas - but most could be oblivious to the fact.
A new concession from the Inland Revenue means seasonal gifts such as bottles of wine, chocolates, gift vouchers or turkeys are tax free.
But, according to Brighton-based accountants Mazars, the change in policy had not been "well publicised" in the business community.
Tax adviser Mike Chapman said: "A 'trivial' gift is not taxable, whether it is for one employee or for 1,000 employees. Potentially, there could be a lot of tax at stake."
Mr Chapman warned companies spending more than £150 per head at a Christmas party would require tax and national insurance contributions.
He said: "If you have more than one annual function each party will be exempt so long as the £150 aggregate total is not exceeded.
"Caught up in the general atmosphere of goodwill it's easy for the unwary to fall foul of the Revenue."
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