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Trivial Benefits

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    Trivial Benefits

    Does anyone use this?

    A Ltd doesn't have to pay tax on a benefit to an employee as long as the cost doesn't exceed £50. There is no limit to how many of these £50 max benefits a company can give. Unless you're the director, then there is a yearly cap of £300. This is in addition to the annual event expense.

    https://www.gov.uk/expenses-and-bene...ivial-benefits
    https://www.gov.uk/government/public...draft-guidance
    Last edited by l35kee; 6 June 2017, 13:34.

    #2
    Only 5-6 times a year

    Comment


      #3
      You might try using the search method detailed in the FAQ a bit more.

      https://www.google.co.uk/search?q=tr...obile&ie=UTF-8
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Originally posted by northernladuk View Post
        You might try using the search method detailed in the FAQ a bit more.

        https://www.google.co.uk/search?q=tr...obile&ie=UTF-8
        arghh! Yeah I forgot about that. The normal search didn't bring anything up. Thought I was on to something there

        Comment


          #5
          Originally posted by le3ky View Post
          arghh! Yeah I forgot about that. The normal search didn't bring anything up. Thought I was on to something there
          Since April 2016, I have seen an increase in contractors having a larger wine collection!
          We're all ears!

          Comment


            #6
            Thanks OP for not using the search facility
            When I looked into this in the past I ruled this out as I thought there was tax implications.
            Not going to make you rich, but every little helps. Maybe I'll get £50 of supermarket vouchers for my poor director.

            Comment


              #7
              Originally posted by whats View Post
              Thanks OP for not using the search facility
              When I looked into this in the past I ruled this out as I thought there was tax implications.
              Not going to make you rich, but every little helps. Maybe I'll get £50 of supermarket vouchers for my poor director.
              Supermarket vouchers? Is that allowed? I am not sure:


              One of the conditions that has to be satisfied before the trivial benefits exemption can apply is that the benefit is not cash or a cash voucher. However, benefits provided in the form of a non-cash gift voucher can be covered by the exemption.

              Example D

              Employer D provides each of its employees with a bottle of wine costing £25 at Christmas. However, as an alternative, it provides employees who do not drink alcohol with a £25 gift voucher for a national supermarket chain which they can exchange for an alternative non-alcoholic Christmas gift. Both the bottle of wine and the non-cash gift voucher can be covered by the exemption.

              Cash and cash vouchers should not be treated as exempt from tax as trivial benefits, regardless of how small the cost.
              Doesn't this mean you still have to pay tax of the voucher amount?
              What is the difference between cash voucher and a non-cash gift voucher?
              Last edited by pscont; 7 June 2017, 08:58.

              Comment


                #8
                Originally posted by whats View Post
                Thanks OP for not using the search facility
                When I looked into this in the past I ruled this out as I thought there was tax implications.
                Not going to make you rich, but every little helps. Maybe I'll get £50 of supermarket vouchers for my poor director.
                Hah! I used the search facility. I just forgot how terrible it was :P

                I think an amazon voucher would be a lovely treat for my company director.

                Comment


                  #9
                  Originally posted by pscont View Post
                  Supermarket vouchers? Is that allowed? I am not sure:



                  Doesn't this mean you still have to pay tax of the voucher amount?
                  What is the difference between cash voucher and a non-cash gift voucher?
                  As long as the gift card can't be exchanged for cash, it wouldn't be taxable.
                  We're all ears!

                  Comment


                    #10
                    How would one categorize these trivial benefit expenses in FreeAgent? Staff Entertaining?

                    Comment

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