Bonus or tax free gift

Shelby219

Registered User
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105
I am a sole trader and two of my adult children are in my employment, I want to give them a bonus of e2000 each after a good year, which they will be taxed on at 20%,would it be better if I increased my own pension contribution instead from that years extra profit at 40% tax rate and gave them a gift of 2000e out of my own money?
 
Not sure what's the right answer to your question, but you can give 500 of the 2000 to them as a gift voucher tax free - [broken link removed]
 
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