Summer is coming to an end. The children have gone back to school and in the office most of the chairs, except those of the home workers, are occupied. Back to business and back to regularity. Although such a holiday period is lovely, it is also nice to have some structure again.

Many companies are gearing up for the last quarter. And before you know it, Christmas is just around the corner. A period when people often look back on the past year. And a great time to thank employees and relations for their efforts. Often through a Christmas drink with accompanying speech. But increasingly also by giving a nice gift.

Through our experience in delivering business gifts and Christmas hampers, we know that there is quite a lot involved in choosing a great gift. How much can I spend per person, how many packages are involved, who decides? Are we going for a package or a single gift? Because we like to think along with you, here are some tips to make arranging a valuable gift a little easier.

Why a Christmas present?

After the corona years when a lot was asked of employees and at a time when many sectors were short-staffed, it has become clear to many employers that good and satisfied staff cannot be taken for granted. People have become aware that appreciation from management or supervisors has become an important factor. It has also become clear that expression of appreciation is more than just a good salary. Good fringe benefits are considered at least as important. Working from home, flexible working hours, discounts, training opportunities are some examples. But also a fruit platter during illness or a nice gift at the end of the year shows that the employee matters. And that is noticed by employees. Especially when they see that real attention has been paid to picking a suitable gift.

Business partners are also increasingly thanked by companies for their cooperation over the past year. Often, not all business partners receive a Christmas present, but a selection is made.

Working expenses scheme (WKR)

First, it is important to take stock of how many people will be given a gift. Is everyone getting a gift and is it the same gift? Check that no people are forgotten due to temporary or long-term absence. And do business associates also get a Christmas package? (Please note that these packages are not covered by the WKR scheme!) Take into account extra packages for newly hired staff or if you do want to give someone a package last minute.

Free space
Once the numbers are known, it is time to determine the amount. The Working Costs Regulation allows companies to spend a certain amount tax-free, this is called "the free allowance". In 2023, this is increased to 3% of the fiscal wage bill up to €400,000. For the part above this amount, the free allowance remains 1.18%.

This means an increase in the maximum tax-free wage bill from €6800 in 2022 to €12,000 in 2023 (for a wage bill of €400,000). Of course, we don't need to explain that this offers an employer a great opportunity to really pick something nice without additional tax obligations!

Promotional gifts
We briefly mentioned that corporate gifts are not covered by the WKR. For tax rules, it is good to know what a corporate gift actually is;

not structural (so you give it incidentally)

for an existing customer (gifts to potential customers fall under business expenses)

there is no quid pro quo

Preload
If the total amount of gifts you pay per person per year does not exceed €227, you can always reclaim the VAT. Or if you give a gift that a person could use in their business, it is also allowed. In the latter case, the person himself must be entitled to a VAT deduction and therefore be an entrepreneur and not a private individual.

Income tax
According to income tax of the cost of corporate gifts under entertainment expenses. These are then rifle mixed costs and this means they are partly deductible. The part that is not deductible is added to your profit.As with the costs of gifts for staff, we also recommend asking your accountant about the exact status of tax obligations and benefits for your company when it comes to corporate gift costs.

Quality over quantity
The most logical place to orientate yourself is the internet. Here you will come across numerous agencies offering mostly standard packages. A box full of food always looks nice, but practice shows that much remains in the employee's pantry. It is nicer to choose a gift that really benefits the employee. Not just at Christmas, but for longer. Look for a gift that the employee and any family members will use for a long time and that they will really enjoy. The employee will certainly appreciate that attention has been paid to choosing a gift.

Sustainability
Fortunately, many people and also companies are becoming aware of climate issues. It is therefore not surprising to take this into account when giving a Christmas gift. Think about a sustainable gift. A good example are our heating products. Because these products heat you and not the environment, the thermostat can be turned down a degree. This is not only good for the environment, but also good for the employee's wallet. Giving a sustainable gift shows your company is socially aware.

Personalised gift
Check out the possibilities of making the gift as personal as possible. The real corporate gift agencies are not always as flexible when it comes to customisation. They often provide standard packages where personalisation mainly means printing a product with the company logo.What we often see is that companies ask us if it is possible to add a personalised card. Or to deliver the package at home instead of at the office. Or to complement the products we offer with a nice bottle of wine or cheese. We love this! Nothing is too crazy for us and we like to think along with you! This also includes wrapping with a nice Christmas wrapping paper. And would the company like to see its logo on the products? No problem.

Start on time
We often see several people deciding on the choice of a product. This requires consultation and this takes time. We find that the choice is not only based on the gift itself, but things like price and possibility of customisation are also important. Important if you really want to give a personal touch to the Christmas present. Invite the company so you can actually see and feel the quality of the product. This way, you can also easily and quickly discuss the options and a decision can be made quickly. This is great for you because you know that the most important work has been done and for the company that will take care of the order it is great because they can start working for you immediately.

Stock
Also important is the company's stock. We find that more and more companies are asking us to take care of their Christmas gift. Not only the smaller companies but also those with decent numbers of employees. Especially when it comes to companies that offer specific products, as we do, and are not so much focused solely on offering Christmas gifts, it is good to check whether there is sufficient stock. This allows the company that will deliver your Christmas gifts to order extra if needed. Over the years, we have learned how much we need to produce in order to deliver well from stock, but this is by no means the case for all companies.

All in all, then, there is quite a lot involved in picking out a great gift. Fortunately, you don't have to do it alone and there are companies like us who are happy to help. Curious what we can do for you? Feel free to contact us via orders@nikki.amsterdam or check our promotional gifts page.