‘Tis the season where you may be spending more money on gifts and treats for yourself and others. Have you considered that some of these gifts and treats may meet the criteria to be classed as Trivial Benefits thus becoming allowable business expenses?

A Limited Company can provide it’s employees and directors with Trivial Benefits provided they meet certain criteria; should they qualify, then they will be exempt from tax and National Insurance for the individual receiving them.

Ok….so what qualifies as a Trivial Benefit?….Well whilst it cannot just be cash, almost anything else would be fine provided the cost of it doesn’t exceed £50 each time, it isn’t a regular ongoing cost (i.e. a gym membership) and it isn’t in the terms of your employment contract.

So, whether you need a new kettle, a pair of trainers, some jump leads, or you just fancy a meal out, if it costs less than £50 then keep hold of the receipt and claim it back through your business.

Please note, for directors the total amount which can be claimed each tax year is £300.

Tax on trivial benefits – GOV.UK (www.gov.uk)

If you have something in mind but want to check whether it would qualify as a Trivial Benefit, contact DCG Accountancy today and we will be delighted to assist you.


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