Trivial Benefit: any rule to prevent *any* small expense upto £50 being tax-exempt?

[Teejay]

I've seen a number of posts about Trivial Benefits but they seem to be talking more about the possibility of using these benefits, not which kind of benefits are included.

HMRC guidelines seem quite generic:



I read somewhere that it won't qualify if it's a regular expense (like gym memberships), but other than that, wouldn't any small purchase qualify under the criteria above? eg, any purchase online or in physical shop within the limits for clothes or books for personal use, entertainment (like buying a DVD player, or sound-system, headphones, ...), even ebay purchases; any kind of e-voucher (supermarket, amazon, toy shops, etc), even just going out for a movie and/or food seems to fit within the guidelines?

Is there any rule that prevents this kind of small purchases to be used as the tax-exempt Trivial Benefit?

This is my understanding too and i have been claiming last year.

[TheCyclingProgrammer]

The key word there is "employees". You aren't one. Therefore...

It applies to directors as do pretty much all employee benefit and expense rules. There’s even a special rule FOR directors (the annual cap).

[Smartie]

£50 Amazon voucher six times a year.

[Darren at Fox-Bartfield]

Vouchers

£50 Amazon voucher six times a year.

From HMRC link:-

You don’t have to pay tax on a benefit for your employee 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

This is known as a ‘trivial benefit’. You don’t need to pay tax or National Insurance or let HM Revenue and Customs (HMRC) know

[TheCyclingProgrammer]

£50 Amazon voucher six times a year.

Oh...so close.

[BlueSharp]

£50 Amazon voucher six times a year.

My accountant recommended £50 voucher 3 times a year.

[WordIsBond]

My accountant recommended £50 voucher 3 times a year.

Find another accountant who knows the rules. Maybe look up a few posts if you can't find one anywhere else.

[BlueSharp]

Find another accountant who knows the rules. Maybe look up a few posts if you can't find one anywhere else.

No I'm fine thanks. 3 times a year birthday, Christmas and another annual event such as Easter as recommended in various places.

[Maslins]

No I'm fine thanks. 3 times a year birthday, Christmas and another annual event such as Easter as recommended in various places.

I personally would feel more comfortable with this. Seems a bit more like what a "real company" would do with an "actual employee".

Taking 6 x £50 vouchers, possibly even 6 days on the trot...well, it's small enough it'd never get challenged, and superficially it is to the letter of the law...but it doesn't sit right with me.

[TheCyclingProgrammer]

No I'm fine thanks. 3 times a year birthday, Christmas and another annual event such as Easter as recommended in various places.

I'm not sure how this makes any sense.

It doesn't qualify as a trivial gift as it's a voucher and cash vouchers aren't allowed.

I fail to see how it qualifies as an "annual event" (or three "annual events") either.