Are you utilising your trivial benefits allowance?
Are you a business owner? Every week I'm going to share a marvelous tip just for you 🥂
Starting with 👀 marvelous Trivial Benefits, tax-free gifts for you from your business!
Are you a company director? This is for you…. Read on, you can actually ‘gift’ yourself from your business, tax-free.
Trivial benefits are allowable to your employees at a cap of £50 each and to directors at a limit of £300 (£50 max per transaction), per tax year. These benefits cannot be a cash gift, not in anyone’s contract as a given, and not a reward for performance. And they cannot be a penny over £50!
£49.99 ✔
£50.00 ✔
£50.01 ❌ If you go a penny over £50 the whole amount is taxable not just the 1p.
Examples of such gifts could be;
🎉 Gift vouchers
🎉 Day out
🎉 Wine and chocolates
🎉 Salon treatment
🎉 Sports match
Do you have disposable cash in your business? Go on…. treat yourself - it's allowed, just don’t go above £50 per purchase, and if you’re taking the directors limit, stick to the £300 per tax year.
👉 How would you use your trivial benefit? 👈
We’ve bought some great race day tickets at £45 each 🏇🏇 myself and my husband are both directors and later that day we’ll have a meal, and as long as the split is £50 or less each that’ll be a trivial benefit too. Who says romance is dead 💙. Oh and this benefit is in addition to the £150 annual parties and functions exemption so we’ll have another knees-up at Christmas 💃🕺
You need to be a director of a closed company (5 or fewer directors) for trivial benefits, if you’re not sure what you can claim speak to your accountant. 👀
Looking for an accountant? Why not take a look at our website for more information https://logicalbi.com/ currently taking on new clients for accounting services, business planning projects and monthly part-time CFO retainers. Email finance@logicalbi.com
