Trivial Benefits Trivial Benefits
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  1. #1

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    Default Trivial Benefits

    "What this is you get a £300 allowance in the tax year. This is a gift from the company to the director but there are some rulings. The gift can be anything as long as its not cash or a cash voucher (exchangeable for cash). Each transaction has a limit of £50. Exceeding this will disallow the expense. It will also have to be paid from the company account and you will allocate it to sundries on FA. A good use of this would be an amazon gift card."


    15 years running a company, I have never heard of this. Not one accountant (until now) has mentioned this.

    qh
    He had a negative bluety on a quackhandle and was quadraspazzed on a lifeglug.

    I look forward to your all knowing and likely sarcastic and unhelpful reply.


  2. #2

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    I found this out about 3 years ago and have used it since then, but I like you was miffed that never has this been mentioned by my accountant. I told all the contractors at my last gig about this and they were shocked too as they had no idea. I often wonder if I'm better off finding a new accountant.
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  3. #3

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    Tax on trivial benefits - GOV.UK

    "Directors of ‘close’ companies
    You can’t receive trivial benefits worth more than £300 in a tax year if you’re the director of a ‘close’ company.

    A close company is a limited company that’s run by 5 or fewer shareholders."

    Is the "Close" company line saying: "you cannot have this benefit" or is it saying: "the benefit is limited to less than £300 of benefit in a FY" ?

    M

  4. #4

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    Quote Originally Posted by mjcp View Post
    Tax on trivial benefits - GOV.UK

    "Directors of ‘close’ companies
    You can’t receive trivial benefits worth more than £300 in a tax year if you’re the director of a ‘close’ company.

    A close company is a limited company that’s run by 5 or fewer shareholders."

    Is the "Close" company line saying: "you cannot have this benefit" or is it saying: "the benefit is limited to less than £300 of benefit in a FY" ?

    M
    The benefit is limited to £300 or less in total in a FY
    Last edited by The Spartan; 31st July 2020 at 10:05. Reason: added total
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  5. #5

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    Quote Originally Posted by The Spartan View Post
    The benefit is limited to £300 or less in total in the Personal Tax Year
    Tax note it is not the Financial Year of YourCo. It is the Personal Tax year ended 5 April.
    I was an IPSE Consultative Council Member, until the BoD abolished it. I am not an IPSE Member, since they have no longer have any relevance to me, as an IT Contractor. Read my lips...I recommend QDOS for ALL your Insurance requirements (Contact me for a referral code).

  6. #6

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    Please see the link below from HMRC in relation to this;

    Tax on trivial benefits - GOV.UK

    Some may accountants overlook due to the amount and think it is not material or are not actually aware of this, but this is something we believe adds value as this is something that can be claimed each tax year (from 6th April to 5th April) and applies to all employees of the company and is fully tax deductible against Corporation Tax and with no personal tax implications providing the criteria is met.

    This is something that all accountants could make use of in their tax planning calls and something we utilise.

  7. #7

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    Quote Originally Posted by quackhandle View Post
    "What this is you get a £300 allowance in the tax year. This is a gift from the company to the director but there are some rulings. The gift can be anything as long as its not cash or a cash voucher (exchangeable for cash). Each transaction has a limit of £50. Exceeding this will disallow the expense. It will also have to be paid from the company account and you will allocate it to sundries on FA. A good use of this would be an amazon gift card."


    15 years running a company, I have never heard of this. Not one accountant (until now) has mentioned this.

    qh
    It's been discussed on this forum now and again for a while now. Some take advantage of it, others don't. We blogged about it when came into effect on 6 April 2016.

  8. #8

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    Quote Originally Posted by Ricky@IntouchAccounting View Post
    Please see the link below from HMRC in relation to this;

    Tax on trivial benefits - GOV.UK

    Some may accountants overlook due to the amount and think it is not material or are not actually aware of this, but this is something we believe adds value as this is something that can be claimed each tax year (from 6th April to 5th April) and applies to all employees of the company and is fully tax deductible against Corporation Tax and with no personal tax implications providing the criteria is met.

    This is something that all accountants could make use of in their tax planning calls and something we utilise.
    Thanks Ricky, in the 7-8 years I've been with Intouch no one has ever mentioned it to me
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  9. #9

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    Quote Originally Posted by Ricky@IntouchAccounting View Post
    Please see the link below from HMRC in relation to this;

    Tax on trivial benefits - GOV.UK

    Some may accountants overlook due to the amount and think it is not material or are not actually aware of this, but this is something we believe adds value as this is something that can be claimed each tax year (from 6th April to 5th April) and applies to all employees of the company and is fully tax deductible against Corporation Tax and with no personal tax implications providing the criteria is met.

    This is something that all accountants could make use of in their tax planning calls and something we utilise.
    What sort of thing can it consist of?
    I presume amazon vouchers count as cash so not valid.
    What about a £300 bar tab in my local?
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  10. #10

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    Quote Originally Posted by Lance View Post
    What sort of thing can it consist of?
    I presume amazon vouchers count as cash so not valid.
    What about a £300 bar tab in my local?
    They are not considered cash, so they are OK.

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