Earlier this year we highlighted the tax concession afforded by the so-called Trivial Benefit rules.
It is possible to make small tax-free payments to employees, including directors…
Employers and employees don’t have to pay tax on such a benefit if all of the following apply:
- it cost you £50 or less to provide,
- it isn’t cash or a cash voucher,
- it isn’t a reward for their work or performance,
- it isn’t in the terms of their contract.
HMRC describes these payments as a ‘trivial benefit’.
You can’t receive trivial benefits worth more than £300 in a tax year if you are the director of a ‘close’ company. A close company is a limited company that’s run by 5 or fewer shareholders.
Readers who manage a business may want to integrate a formal process into their benefits strategy to take advantage of this opportunity.
Every little helps.
- Mini-Budget delivers some big changes - September 29, 2022
- Relief scheme takes the heat off energy bills - September 27, 2022
- Mini-Budget 23 September 2022 - September 23, 2022
- Businesses face rebranding following Queens death - September 22, 2022
- Prepare your business for the next big challenge - September 20, 2022
- We need to do things differently says Chancellor - September 16, 2022
- Tough new rules to protect against cyber attacks - September 13, 2022
- Energy bill support for families and businesses - September 12, 2022