30+ best Christmas gift ideas for employees to foster goodwill

The end of the year is here, which means it is time to order corporate Christmas gifts to hand out to employees and staff. While this might seem like a daunting task, there are a few key things to keep in mind which can help smooth the process - from conception to presenting the gifts.

With the help from this Christmas gifting guide, you can find the 30+ best Christmas gift ideas to give to your staff, employees, and clients. Learn everything you need from what makes a good gift to the tax regulations you need to consider.

Reasons to hand out Christmas gifts to team members in the UK

There are many reasons why it makes sense to hand out corporate Christmas gifts to employees and staff at the end of the year. While some, like saying thank you and showing appreciation, are clear, there are many other reasons why it makes sense.

Businesses can benefit from giving gifts. Here are more reasons why.

1. Increase team morale - show that the efforts of the team have not gone unnoticed. This can help boost spirits, especially at the end of the year.
2. Create a positive working environment - employees are more likely to stay when there is clear appreciation and thoughtfulness from the heads.
3. Strengthen business relationships - hand out gifts to external clients, customers, and partners to show how these relationships matter.
4. Create memorable experiences - it isn’t just the gift that is important. Consider hosting a party or creating an overall event and experience that employees will never forget.
5. Stand out from the competition - distinguish your brand from the others by taking the time to create thoughtful memories and moments that will be unforgettable.
6. Increase brand awareness - while this should not be the main reason a gift is given, brand awareness can be a nice side benefit. When the gifts are thoughtful, the recipients are more likely to share on social media such as LinkedIn. This can help boost and foster positive awareness.

Tax rules and expenses for employee gifts in the UK

You decided to show some appreciation for your employees this year, but the question remains, how much can I spend on these gifts to stay within the legal tax limit?

What is the HMRC limit on gifts to employees?

As of publication, the UK allowance according to HMRC rules is a £50 limit per employee to be completely free of the income tax. This is an all-or-nothing rule meaning, if the product costs £50.01, the item is no longer free of income tax. It does not mean the extra £0.01 is taxed and the original £50 is tax free. There are no exemptions from this rule. The VAT is also included in the overall £50 limit.

Employees can receive gifts throughout the year, however the total of the gifts they receive throughout the year cannot be more than the annual £50 limit.

However, there is a larger annual budget cap for the company directors. Company directors have an annual £300 cap. This is the equivalent of six £50 gifts throughout the year.

💡 Only 22% of UK businesses are aware of this exemption and rule. Make sure to always check the limits and regulations before ordering employee gifts.

Read the full breakdown and details at https://goingprivateuk.co.uk/trivial-benefits-allowance-uk/.

What are the four simple rules for employee gifts?

While you should always consult the regulations and schemes before purchasing something for an employee or director, here are four quick rules you can consider when choosing gifts.

1. The gift cannot be a reward for a service. The gift cannot be tied to performance or any specific work duties.
2. The gift cannot be cash or a cash voucher. Though gift cards like Amazon are allowed as they cannot be directly exchanged for cash.
3. The gift cannot be contractual. Receiving a gift cannot already be written in the contract
4. The gift cannot exceed the £50 or £300 limit for employees or directors respectively. The VAT is included in this limit too.

30+ Christmas presents for employees and staff

Here is the full breakdown of the 30+ best gift ideas to consider for your employee and staff this year.

HMRC qualifying gifts

As a reminder, HMRC qualifying gifts are any gifts less than £50 per employee to be completely free of income tax.

Here are popular gift ideas and options that qualify to be tax free.

Most popular options:

• Bobby Soft, anti-theft backpack - RFID protected pockets, hidden zippers, fits a 15.6” laptop
• Citizen Green Libeccio 24" recycled windproof umbrella - 24” umbrella, features eight panels, made from 100% recycled polyester
• Urban Vitamin Berkeley IPX7 waterproof 10W speaker - waterproof up to one metre deep and 30 minutes, two subwoofers on both ends, integrated mic

Small gift ideas

Small doesn’t mean the gift is bad or it isn’t thoughtful enough. These gift ideas might be small, but they can have a big impact and impression.

Mugs

Mugs are perfect as they can be used for long periods of time. Plus, who doesn’t want another stylish mug?

Most popular options:

• Santos coffee mug 330 ml - sleek design, made of ceramic, dishwasher safe
• Cali 370 ml ceramic mug with matt finish - gift box included, dishwasher safe
• Lagan copper vacuum insulated tumbler with bamboo lid 300 ml - eco-friendly option, handwash recommended, double wall insulation

Gift sets for easy gifting

Skip having to create a full hamper to hand out to employees and clients. Choose products that already come in a product bundle or gift set. Save both time and money with these options.

Most popular options:

• VINGA x TGL duo gift set - includes body wash and lotion, vegan and paraben-free formula, tubes made from sugarcane-based plastic for an eco-friendly twist
• Stainless steel cocktail set Tatiana - made from stainless steel, packed in cotton pouch, includes four tools
• 3 piece gift set in box - includes notebook, water bottle and ball pen, sleek professional design, FSC®-certified
• Wellmark Just Relax 3-piece 200 ml bath salt gift set - three sets of 200 ml bottles, rose, lavender, and camomile scents, affordable price
• Surge RCS recycled PET 20W type C 3 pcs charging set - can charge a variety of small and large electronics, arrives in a pouch, data transferring capabilities too

Gift ideas on a budget

As the HMRC limit can be quite restrictive, especially if you plan on rewarding and celebrating staff throughout the year. These options are great because they are low cost. Plus, the more you order, the lower the per unit price the product is too.

Pens

Gifting a pen does not mean the product is cheap. Consider choosing high-quality pens that radiate professionalism and style.

Most popular options:

• Duo Tone Parker Jotter XL pen - made from stainless steel, arrives in gift box, ideal for larger hands
• Geneva stylus ballpoint pen and rollerball pen set - include a ballpoint and roller ball pen, shiny chrome barrel and accents, arrives in a gift box
• Swiss Peak Storm RCS recycled aluminum dual tip pen - made from recycled aluminium, two tips - one graphite, one ballpoint pen, name brand product

Tote bags

These might seem like a simple trade show giveaway, with the right product and design, tote bags are the perfect corporate Christmas gift.

Most popular options:

• Odessa 220 g/m² cotton tote bag - gusset sides for extra room, open main compartment, drop down hands are 30 cm
• Carolina cotton tote bag 100 g/m² - washable, made from quality cotton, can hold up to 5 kg
• VINGA Livorno GRS recycled polyester tote - made from 51% recycled polyester, multiple pockets, easily foldable for storage
• Impact Aware™ 240 gsm rcanvas large tote undyed - made from recycled canvas (70% recycled cotton, 30% recycled polyester), open main compartment

Bulk gift ideas

These products have a higher price point, but when ordered in bulk, the price becomes more affordable. Many of these products also have a high minimum order quantity, making them perfect to hand out to the whole company.

All products are available in bulk, but these are the best options when selecting products for a Christmas hamper.

Most popular options:

• Maxi Promo Pack with Milka Favourites Mix - a sweet treat for employees, resealable gift box, choose from eight different fillings
• Batian unisex crewneck sweater - unisex fit, organic cotton and recycled polyester blend, individually wrapped in a recycled packaging
• Stockholm Backpack 18L rCotton 450 gsm. rPET handles - made from recycled cotton canvas, adjustable shoulder straps, large main compartment with additional front zippered prockets
• Hoggar recycled plastic over-ear foldeable ANC and ENC headphones - features active noise and environmental noise cancellation, foldable design, delivered in a premium gift box
• Black+Blum Stainless Steel Double Bento Box - includes two stainless steel containers, 100% leakproof, bamboo lid doubles as a chopping board

Unique Christmas gift ideas

These are the out of the box ideas that most brands and businesses might not have considered. Skip the common gifts and leave a bigger impact on employees this year with truly unique products.

Practical unique gifts

While these are still unique products, they are more practical. They are uncommon, but not something that is too strange. Employees and clients can appreciate the thoughtfulness while also still using these in their everyday lives.

Most popular options:

• Terracotta pot 'forget me not' - grows “forget me not” flowers, made in EU, small terracotta pot
• Bamboo cheese board Zea - includes four stainless steel cutlery pieces, comes in storage compartment, individually packaged in a brown cardboard box
• Prixton MGF80 Synergy massage gun - includes four heads for different settings, five different speed settings, noise level is < 60 dB
• Prixton Prado 10" wifi digital photo frame - connects to the Frameo app, import images from microSD card or USB, adjustable speed
• AdHoc RoccaAlio Garlic press with chopping board - cut garlic in a single motion, made from premium acacia wood, clean lines and refined handles
• Matcha set 5 pcs - includes five pieces, made from bamboo, includes gift box

Fun unique gifts

These are the crazy products that are sure to make an impression on anyone who receives it. While they are not the most practical, they can still get a laugh or a smile from those who receive it.

Most popular options:

• Vinga Colos beach tennis game - made from wood and vegan leather, includes two paddles and balls, packaged in a canvas bag for easy carrying
• VINGA Avery RCS table lamp - modern design, touch function, choose between warm light, white light, and warm white light
• 9 stone ice cube set in box - includes nine reusable stone ice cubes, set in a pine wooden box, arrives in velvet pouch

Ideas for gifts from the boss

These ideas are for a busy boss who is looking to give something special to employees without spending too much time deciding.

Most popular options:

• Tromso wine cooler - double-wall construction, made from stainless steel, easy to clean
• Stanley Quencher H2.0 1200 ml tumbler - made of stainless steel, double-wall insulation, fits most cup holders
• Ivy RPET mohair blanket - arrives wrapped in a ribbon and packed in a recycled polybag, made from recycled polyester, ultra soft feeling
• Moleskine Dotted L Hard Cover Notebook - features an elastic closure and ribbon bookmark, expandable cardboard pocket, choose the page designs

Whatever you choose for your corporate Christmas gifts and hampers this year, make sure to make it a memorable one. Reach out to any of our experts to support you with the selection and branding process.