T is for Trivial Benefits
If you are a director of a limited company and you’ve been working super hard, then you definitely deserve a treat!
Do you want to get employer points and treat an employee that really deserves it?
You don’t have to pay tax on a TRIVIAL BENEFIT (gift) for your employee if:
- It costs you £50 or less (£50.01 is not allowed!)
- It isn’t cash or a voucher exchangeable for cash
- It isn’t in the terms of their contract
- It isn’t a reward for their work or performance
You don’t need to pay tax or national insurance or tell HMRC (no p11d).
The amount of these are unlimited – HMRC know you are nice but not that nice!
What about me?
If you are a director of a close company (a limited company run by 5 of less shareholders) you can have up to £300 worth of trivial benefits annually.
We are thinking that Christmas gift, Birthday gift, Anniversary, Easter, Valentines and…. Summer treat?
Remember though… you may have to pay tax on any gifts that don’t meet all these criteria or if there is any salary sacrifice.
If you’re not sure whether something counts, then get in touch.