Christmas gifts for employees: everything you need to know

Is it the most wonderful time of the year… or just the busiest? 

If Christmas equals ‘overwhelm’ to you, then you’re not alone. And you might be surprised to hear it from us, but we know a big part of that stress is due to the pressure to give Christmas presents. 

Because if you work as a HR professional, line manager, office manager, EA, or PA, you’ve likely got employee gifting to think about on top of your kids, partner, siblings, parents, friends, neighbours, and everyone else in your life. 

That’s a big mental load, and a lot of logistical admin.

In this article, we’ll tell you everything you need to know about corporate Christmas gifts for employees - sharing our own gifting data, and Huggg’s Festive Gift Guide to give you some ideas for your own teams. 

What’s covered in the article?

• Why does employee gifting matter?
• What are the tax implications of Christmas gifts for staff?
• Who owns Christmas gifting at work?
• Ideas for Christmas gifts for employees
• Huggg’s data on employee Christmas gifting
• The logistics of corporate Christmas gifts
• FAQs

Why does employee gifting matter? 

Employee gifting matters because research shows us it’s linked to higher motivation, better work performance, and because it’s the simplest way to frame employee recognition.

We see employee gifts as the most simple, effective form of recognition. Gifts are a human expression of thanks, one that tangibly improves someone’s day - even if it’s in a subtle way. The phrase “it’s the thought that counts” can be misunderstood, but really it’s all about showing-not-telling someone that you recognise and appreciate their efforts. Christmas corporate gifts are a perfect way to do just that.

But don’t take our word for it - here’s what the research says:

The research: Employee recognition and non-monetary rewards have been shown to have a positive effect on workplace performance, according to CIPD

What it means to you… We don’t have to tell you that recognition and retention, engagement, and performance are closely linked. But it always comes down to ROI, so now here’s the evidence to back your gifting-led strategy. Better work performance = better business outcomes. 

The research: One study showed tangible rewards (like gifts or gift cards) can outperform cash in terms of motivating employees, because it feels separate to salary.

What it means to you… Of course, everyone wants a salary increase and a hefty end-of-year bonus. But that’s not always possible. The good thing is that tangible rewards (like gifts!) were shown to boost motivation - for a more affordable way to keep your employees engaged.

The research: Another showed that tangible rewards have a particularly strong effect on performance when they’re based on “aspects of work not directly rewarded financially”.

What it means to you… It’s not all about hitting KPIs or reaching targets. Sometimes you want to reward behaviours, attitudes, or other things that aren’t directly tied to salary. And research suggests that tangible rewards are most impactful when this is how they’re used.

What are the tax implications of Christmas gifting in the UK?

The tax implications of Christmas gifting depend on whether gifts given qualify as a trivial benefit, according to HMRC. 

DISCLAIMER: Please use this as a guide and do not take it as legal or tax advice - seek your own advice as appropriate. 

When we think of Christmas, most don't think about taxes. It conjures the opposite feeling to the tinselled, twinkling energy that the holiday season usually brings. But unfortunately, it’s one of HR’s many concerns - though it doesn’t have to be so concerning, as long as you follow the guidelines.

Are Christmas gifts for employees tax deductible?

Yes - if they meet HMRC’s “trivial benefit” criteria (cost under £50, not cash, and not tied to performance).

Christmas gifts can be classed as a business expense, making them tax deductible. But that all depends on whether it meets HMRC’s definition of a trivial benefit.

According to HMRC, a trivial benefit is one that:

• Costs £50 or less per employee (including VAT)
• Isn’t cash or a cash voucher
• Isn’t given as a reward for work performance or contractual entitlement
• Isn’t part of a salary sacrifice scheme

If your employee Christmas gifts meet these criteria - like a small festive hamper or a ‘gift with choice’ - it’s likely not taxable and doesn’t need to be reported to HMRC.  

Are Christmas gift cards to employees taxable?

It depends - open-loop cards (e.g. Visa, Mastercard) are taxable, while store-specific or restricted-use cards under £50 may qualify as tax-free.

If they can be exchanged for cash or used widely (like with a prepaid Visa card), then gift cards are taxable - as they count as cash equivalents.

There are exceptions, though. Vouchers that are redeemable only with certain retailers - like Huggg offers - can qualify as trivial benefits if their value is below £50, and they meet the other conditions we covered off.

Here’s how you stay compliant:

1. Keep each gift’s value under £50
2. Avoid prepaid gift cards (e.g. Mastercard, Visa)
3. Keep a record of the cost and nature of the gifts

Can you write off Christmas gifts for employees?

Yes - reasonable seasonal gifts are still deductible for corporation tax, though some may count as taxable benefits for staff.

If you’re spending more on your staff Christmas gifts, you need to report them as a Benefit in Kind and they’ll be subject to tax and National Insurance. 

That said, reasonable seasonal gifts (within the limits) are still deductible as a business expense for corporation tax purposes. It’s just that employees may need to pay tax on them if they fall outside the trivial benefit exemption.

A how-to guide to compliant Christmas gifting:

Step 1: Choose a gift item under £50 in value.
Step 2: Make sure it’s not linked to work performance.
Step 3: Keep a simple record of who received what and when (which is easy with a gifting platform like Huggg)
Step 4: If in doubt, check HMRC’s Trivial Benefits guidance.

Should managers buy Christmas gifts for employees, or is it down to the company?

Ideally, both should play a role - HR, operations, or leadership handles logistics, while managers personalise or add to the gesture.

If you’re asking yourself “should I buy gifts for employees?”, the answer, generally, is yes. Whether you’re part of the HR team, a line manager, or a business leader, then you’d be missing an obvious opportunity for gift-led recognition. But does it matter who your employees perceive the gift to be from? 

Manager-led recognition has been linked to retention and engagement, but there is a benefit to your employer brand to position gifts as coming from the leader, or organisation as a whole. In that situation, HR can take the task on in a logistical sense.

How Huggg helps: on our platform, we offer an easy way to bulk-send Christmas gifts (with the option of employees choosing their own gifts from a certain price range, without knowing the amount!). But if you do want gifts to come from managers (or even other employees), we have budget allocation tools - so you can get the outcome you want from sending Christmas gifts to your staff.

What are good Christmas gifts for employees? 

Good Christmas gifts for employees include anything that makes them feel recognised and understood, so what it is matters. 

Do you get your employees to write letters to Father Christmas and post them up the office chimney? Obviously not (for many, many reasons). So when it comes to choosing corporate Christmas gifts for Employees, where should you start? 

Employee Christmas gift ideas from Huggg data

Because our platform lets employees choose gifts for themselves, we’ve gained a unique insight into what people love to receive. We’ve crunched the numbers, uncovering trends and common preferences, to help guide your gift-giving. Here’s the highlights:

Gift preferences by price point

• £10-15: employees most commonly chose baked goods - like brownies or cookies - when they were gifted a choice of gifts within this price range
   
• £16-31: a lot of love a tipple, don’t we? That’s what the numbers tell us, anyway - wine was the most popular choice for this price point
   
• £31-50: now we’ve reached the ‘mid-range tier’, wine and champagne are still one of the most popular choices - with 11% opting for hampers
   
• £51-100: at the higher end of the scale, we’re still on the same theme. Drinkware, like cocktail-making equipment, is showing an increase in popularity
   
• £101+: at the top end of the scale, 20% opt for smart devices - especially ones that are compact and design-forward

It’s not just about the booze, though! 37% of gift-choosers opt for chocolate - from the budget options to the premium selections - showing that consumables are a big winner for most employees. 

This shows us a preference for the ‘experiential’ - whether it’s something delicious to drink or eat, thermal mugs to use on-the-go, or activity sets. That’s reflected by some of our most-chosen items here:  

Christmas gift ideas for staff:

Festive gifts for employees:

There’s nothing wrong with staying seasonal! Opt for an advent calendar if you want to get in there early, and remind your employees they’re appreciated every single day of December - or go for something celebratory like a novelty cracker or bottle of fizz.

Available from Huggg:

• Coffee advent calendar from Pact Coffee
• Mini Christmas crackers from Hotel Chocolat

Health & wellbeing gifts:

Winter can be a time of (over)indulgence, and also a stressful season in a lot of industries. Give the gift of self-care, whether it’s in the form of beauty and health products, or delicious non-alcoholic drink options to have a rest from the festivities without sacrificing taste.  

Available from Huggg:

• Relax, sleep repeat gift set from Grüum
• Botivo: the British non-alcoholic aperitivo 

Hobby and activity gifts:

As we noted, people love to eat, drink, and be merry - but sometimes it’s nice to get a gift that lasts. Get your employees something related to their interests or hobbies, or give them something to do during their downtime. Because they’re more than their work self!

Available from Huggg:

• Sourdough starter set from Crumb
• 1000pc jigsaw from Cloudberries 

Practical, useful gifts:

Avoid adding to the dreaded pile of Xmas tat, and get your team something useful instead. Insulated mugs, gloves, notebooks, pens - all of these things will get used at some point, so neither you or your recipients feel like the gift is contributing to waste. 

Available from Huggg:

• 12oz cork KeepCup
• Personalised Martha Brook notebook

Employee Christmas hampers:

You can’t go wrong with a little bit of everything. Hampers are always a solid option because they feel like multiple gifts in one, there’ll always be something they like in there, and anything that’s not to their tastes can be shared with friends or family. Win win. 

Available from Huggg:

• Wine & cheese gourmet hamper from Fodabox
• White Christmas gift box from The Gifting Team

Want a full guide of what Huggg has to offer? Check out our festive gift guide.

Can I give my employees gift cards for Christmas, instead of physical gifts?

Yes, but physical gifts feel more personal and show more appreciation.

You might be asking ‘can I send gift cards to my employees?’. And, of course, that’s always an option - a tempting one, too, if you don’t want the pressure of deciding what to send. It also takes the pressure off in other administrative ways, as there’s no need to check postal addresses.

But here’s the thing: vouchers show employees exactly how much you’re spending on them. It feels transactional, they may feel short-changed, and it’s the most impersonal option. Sometimes, it’s necessary - which is why Huggg do offers traditional gift vouchers. But we have a better option too…

On our platform, you can ‘gift with choice’. It’s like sending a voucher, but your employees choose from a list of curated physical gifts - adding their own delivery address. It’s a personal touch, without the admin. 

How to ‘gift with choice’ using Huggg in under 5 minutes:

1. Head to our platform and click ‘Send a choice of gift’
2. Set a budget (optional: choose a gift category and/or customise gift choices)
3. Add a message to your gift links & a ‘digital gift wrap’
4. Choose how to share your gift links
   1. Share the links yourself, on whatever communication tool you use
   2. Share the links by email, using Huggg
   3. Share the links by SMS, using Huggg
5. Choose the quantity of gifts you’re sending, and their expiry date
6. Review and pay

Corporate gifting logistics: made simple

As we’ve touched on, the hardest part of being responsible for employee gifting is often the logistics of it all. If you’ve got a mix of hybrid and remote workers, or teams in multiple locations or on varied shift patterns, things start to get complicated. But there are ways to simplify the process.

Platforms like Huggg make it a lot easier by:

• Removing the need to collect addresses
• Removing the need to choose each gift
• Making budgeting and reporting easy
• Delivering to multiple countries

So you don’t need to ask yourself “how can I send Christmas corporate gifts, on top of all my other responsibilities?”. Because there is an easier way.

Employee Christmas Gifts FAQs

• Should I buy gifts for my employees?

Yes - giving employees a thoughtful physical gift is one of the simplest ways to recognise their contribution and boost motivation.

Research shows that tangible, non-monetary rewards improve morale and engagement more effectively than cash alone. Gifting demonstrates appreciation and helps employees feel valued and connected to your organisation.

• What are the best Christmas gifts you can offer employees?

The best gifts reflect employees’ wants and needs, balancing that with value and ease-of-sending.

Our platform’s ‘gift with choice’ option is great, because they can choose what they like - without seeing a price tag. 

• Can you give me Christmas employee gift ideas?

Yes - our festive gift guide was designed for that reason - check it out here and see gift ideas for all budgets.

• What are some unique employee gift ideas?

Go beyond food and drink and think of hobby-led kits or experiences.

Most people love a sweet treat, or a delicious drink. But if you want to send a unique gift, Huggg has lots of options: clay kits, sourdough starter kits, polaroid-style cameras, sunrise lamps, seed kits… the list goes on!

• What are great Christmas gift ideas for young employees?

Younger employees often value wellness and experiences - non-alcoholic drinks, eco goods, and hobby-based gifts perform well.

Gen Z are often slightly more health-conscious, so our wide range of non-alcoholic tipples could be a good bet. But really, everyone is different, so our ‘gift with choice’ feature really comes in handy.

• Are Christmas gifts to employees tax deductible 

Yes, if they meet HMRC’s definition of a trivial benefit.

That means they cost under £50, aren’t cash or a cash voucher, and aren’t a reward for performance, a contractual entitlement, or part of a salary sacrifice scheme.

• What are the best corporate hampers for Christmas gifts? 

Huggg’s partners include an incredible range of corporate hampers suppliers like FodaBox, and The British Hamper Company.

There are lots of different themed hampers available, so take a look for yourself.  

• Where can I buy Christmas corporate gifts? 

With Huggg - we make it easy to bulk-buy and personalise Christmas corporate gifts online.

Huggg offers a wide range of Christmas corporate gifts - some including personalisation options. You don’t need addresses or even a clear idea of what to send - your employees do that once they’ve received their Huggg link. 

• How can I send Christmas corporate gifts? 

Easily - with Huggg you can bulk-send gifts digitally, without collecting addresses or managing deliveries yourself.

Choose a budget, and bulk-send gifting links to your employees or clients - and that’s it! They provide their delivery address and even pick their present, if you prefer.

• What companies do corporate gift cards for employees?

Huggg offers monetary gift cards for employees, as well as gift cards that are redeemable for physical gifts,

Our takeaway on Christmas gifting for employees…

Recognition works well when it’s thoughtful and stress-free. And with Huggg, that’s possible at Christmas too.

HR and Operations Teams have a lot of their plates (more than a double helping of turkey and roasties). Sending Christmas presents for staff might seem fairly low on the priority list, but we’re arguing that shouldn’t be the case. Here’s two reasons why:

1. There are big benefits

As we’ve discussed, employee recognition matters. And tangible rewards, as a part of that, have been said to benefit businesses, thanks to increased motivation and performance. Christmas gifts are a simple way to make the most of that.

2. It doesn’t have to be hard work

With platforms like Huggg, it doesn’t have to be a logistical nightmare. No address collecting. No time spent deliberating over what gifts to send. No lack of clarity about budgets and reporting. Just a user-friendly platform that lets you tick gifting off your list in minutes.

Start gifting, and see for yourself.