Last updated: 14 October 2026
Is it taxable to send flowers to staff from the company?
Usually not. Flowers sent to an employee for a birthday, a new baby, a bereavement, or when they’re unwell are normally covered by the trivial benefits exemption, as long as they cost £50 or less (including VAT and delivery), aren’t cash or a cash voucher, and aren’t a reward for work or performance. You don’t need to report them or pay tax or NIC. The cost is also an allowable expense for the company. If flowers are sent as a thank-you for hitting a target, the exemption doesn’t apply.
The trivial benefits conditions
| Condition | Flowers for illness or birthday | Flowers as a reward for work |
| Cost £50 or less per gift | Yes | Yes |
| Not cash or cash voucher | Yes | Yes |
| Not contractual | Yes | Yes |
| Not a reward for services | Yes | No |
| Exempt? | Yes | No, taxable unless in a PSA |
Directors of close companies
Directors and their family members can receive trivial benefits, but there’s an annual cap of £300 per director. Each gift must still be £50 or less. Staff who aren’t directors have no annual cap.
Sympathy and wellbeing gifts
Sending flowers when an employee is ill or has suffered a bereavement is a classic trivial benefit. HMRC’s guidance gives similar examples, such as a bottle of wine or a box of chocolates at Christmas.
Example
A design agency sends £35 bouquets to an employee who’s had surgery, another celebrating a new baby, and a third on their birthday. All are exempt. When it sends £45 bouquets to the whole sales team for beating the quarterly target, the flowers are a reward and aren’t trivial. The agency includes them in a PAYE Settlement Agreement, paying the tax and NIC itself.
If the flowers cost more than £50
The whole cost is taxable, not just the excess. Report it on the P11D, or include it in a PSA. Splitting a larger gift into smaller ones to stay under £50 isn’t allowed.
Gifts to customers and suppliers
Flowers sent to customers are business gifts. They’re not deductible unless they carry a clear advertisement for the business and cost no more than £50 per person per year, which flowers rarely do. VAT can be reclaimed on business gifts costing £50 or less.
Common mistakes
- Treating performance gifts as trivial benefits
- Forgetting delivery costs in the £50 limit
- Exceeding the £300 cap for directors
- Claiming customer flowers as a business expense
Records to keep
Keep the invoice, the recipient and reason for the gift. This helps show it wasn’t a reward.
Tax relief for the business
Flowers given to staff as trivial benefits are a deductible staff welfare cost for the company or sole trader. The business can also reclaim VAT on the purchase if it is VAT registered and holds a valid invoice, because gifts to employees are a business expense.
Frequently asked questions
Do I need to tell HMRC about trivial benefits?
No.
Can I give flowers to an employee’s family?
Yes, under the same rules.
What if a bouquet costs £55?
The full amount is taxable.
Are funeral flowers for a staff member’s relative exempt?
Yes, if within the conditions.
Related: employee reward schemes, company Christmas parties and providing mobiles to employees.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with staff gifts and benefits. See our payroll services service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
