If the gift is a genuine one – that is, a personal and
unexpected gift made from an employer to an employee, given as a
gesture of goodwill, or as a token of gratitude - the payment is
not earnings and, therefore, no NICs are due. See
NIM02010 regarding the meaning of
“earnings”.
If the payment is described as a gift, obtain and check all
papers relating to the payment.
If the gift is made in cash, ensure that the employer is not
using the ‘gift’ to hide some other form of payment.
If an employee receives a gift other than in cash, check to
see what form the payment of the gift takes. See
NIM04004 if the ‘gift’ is
made by way of:
