Trivial Benefits - payable per company/directorship?

[northernladuk]

Does anyone actually bother with the trivial benefits? How much differences for £300 a year mean to an average contractor.

Not me.

[SuperLooper]

Does anyone actually bother with the trivial benefits? How much differences for £300 a year mean to an average contractor.

It pays for our Christmas turkey.

[Craig@Clarity]

Does anyone actually bother with the trivial benefits? How much differences for £300 a year mean to an average contractor.

I do. The wife loves flowers randomly now and again just because. Saves me spending my taxed income

[TheCyclingProgrammer]

Does anyone actually bother with the trivial benefits? How much differences for £300 a year mean to an average contractor.

Only took advantage of it for the first time last year and bought myself a £50 case of wine for Christmas and my wife (also a director) some chocolates.

I'd take advantage of it more if I could be bothered.

[WordIsBond]

You can have profit of £400, pay CT of £76, pay a dividend of £324, and pay dividend tax of £24, and pay for these things yourself out of your £300 after-tax income. Or, you can have the company pay for them, have £100 left, pay CT of £19, pay yourself a dividend of £81, pay div tax of £6, and have £75 left. Multiply by 2 if your spouse is a director.

Works for me.

[northernladuk]

Rather spooky little thing that might interest someone...

This topic was also raised on the 13th of March 2018 which, as pointed out by Barrydidit, was two days after Mothers day. And it's raised again.. a day after Mothers day.. All these dutiful sons rueing the money they've spent on their mothers and trying to claw some back or something?

https://www.contractoruk.com/forums/...ax-exempt.html

[northernladuk]

I must say I do like Maslin's approach to this (and the entertaining one as well). He opens his statement at the link below but is challenged and replies with his take on it. That advice sits very well within my risk tolerance. I can see the argument he's presented with about why not do it up to the limit but his approach is the one I'd prefer.

https://www.contractoruk.com/forums/...ml#post2538275

Opening statement

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.

and an interesting discussion continues.

[Maslins]

I still hold that view. Some of our clients do take 6 x £50 vouchers every year and of course we don't stop them...we just don't actively recommend it as a blanket thing all clients should do.

[man]

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?

[northernladuk]

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?

Nothing to do with clarity of the law. Its crystal clear.