Trivial Benefits - payable per company/directorship?

[northernladuk]

I hope everyone is buying their gift cards via IPSE perkbox so getting even more value for free!!!

[Maslins]

My accountant recommended the 6 x £50 vouchers thing. I suppose the conflicting advice simply comes down to lack of clarity in the law combined with different risk appetites amongst accountants?

I don't particularly think it's unclear or risky. I do think it paints a certain picture though, which in the unlikely situation HMRC were to enquire, would lead them to make some assumptions about the person, and see any enquiry more as a fight. This is just my personal opinion, I have no real evidence to back it up, horses for courses etc. However, given the potential tax saving of maxing out on trivial benefits is, well, trivial, it doesn't seem worth it IMHO.

[man]

I don't particularly think it's unclear or risky. I do think it paints a certain picture though, which in the unlikely situation HMRC were to enquire, would lead them to make some assumptions about the person, and see any enquiry more as a fight. This is just my personal opinion, I have no real evidence to back it up, horses for courses etc. However, given the potential tax saving of maxing out on trivial benefits is, well, trivial, it doesn't seem worth it IMHO.

Thanks, it's good to know the thinking behind the advice.

[WordIsBond]

I don't particularly think it's unclear or risky. I do think it paints a certain picture though, which in the unlikely situation HMRC were to enquire, would lead them to make some assumptions about the person, and see any enquiry more as a fight. This is just my personal opinion, I have no real evidence to back it up, horses for courses etc. However, given the potential tax saving of maxing out on trivial benefits is, well, trivial, it doesn't seem worth it IMHO.

This suggests, if I'm reading you correctly, that spending £250-275 on actual stuff wouldn't concern you, but spending exactly £300 on vouchers would be something you'd advise against. Is that fair?

[northernladuk]

This suggests, if I'm reading you correctly, that spending £250-275 on actual stuff wouldn't concern you, but spending exactly £300 on vouchers would be something you'd advise against. Is that fair?

Not really. He's never said he'd advise against it. Read post 18.

[Maslins]

This suggests, if I'm reading you correctly, that spending £250-275 on actual stuff wouldn't concern you, but spending exactly £300 on vouchers would be something you'd advise against. Is that fair?

It's not really about whether it concerns me or not...and to be honest my personal view wouldn't be any different between 6 x trivial benefit physical things that happened to all cost £45-50 each (your suggestion) rather than 6 x £50 vouchers.

I'm also not advising against it, it doesn't concern me, just saying it makes me a bit sad. No different to someone who finds out about the £150 staff party threshold, and goes out of their way to ensure they spend at least £149.

[WordIsBond]

It's not really about whether it concerns me or not...and to be honest my personal view wouldn't be any different between 6 x trivial benefit physical things that happened to all cost £45-50 each (your suggestion) rather than 6 x £50 vouchers.

I'm also not advising against it, it doesn't concern me, just saying it makes me a bit sad. No different to someone who finds out about the £150 staff party threshold, and goes out of their way to ensure they spend at least £149.

Thanks.

My view is that any way legally and honesty I can funnel benefits to my employees (and myself) without HMRC getting their hands on a piece of the action is a good thing. We were doing flu jabs and Christmas turkeys before, now we do some other stuff every year, too. It seems to me much the same as a mobile phone contract.

I appreciate your explanation, always respect your views.

[Maslins]

My view is that any way legally and honesty I can funnel benefits to my employees (and myself) without HMRC getting their hands on a piece of the action is a good thing. We were doing flu jabs and Christmas turkeys before, now we do some other stuff every year, too. It seems to me much the same as a mobile phone contract.

I appreciate your explanation, always respect your views.

Turkey for staff Xmas gifts is IMO exactly what it's designed for (ie the spirit of the law). A little nice gesture, that hopefully staff will appreciate. Same as a little gift on their birthday, or perhaps something if they've been in hospital/had some other crappy personal event.

I'm certainly not against people being tax efficient, far from it. I just think some people can get bogged down in stuff like this. IMHO people should focus on running a successful business whilst of course making sensible choices for the big tax wins, and spend less time/brainpower on maxing out the trivial things that make negligible difference.

[zonkkk]

Is it not better, tax wise, to just buy whatever you want up to £50 and then record it as a trivial benefit?
You get the VAT back then, which you can't with gift cards/vouchers.

I know my company's director is an avid gamer, so he'll probably get a new XBOX controller for Easter as a trivial benefit!

[TheCyclingProgrammer]

Is it not better, tax wise, to just buy whatever you want up to £50 and then record it as a trivial benefit?
You get the VAT back then, which you can't with gift cards/vouchers.

The rules don't stipulate what you can buy, only the exceptions that you can't give (e.g. cash, or cash vouchers).