Trivial Benefits

[l35kee]

She/he reads this forum...

Wait... Are you trying to tell me you're my accountant?

I'm guessing they locked down the ability to add new expense categories to avoid me messing it up (probably rightly so!).

[SueEllen]

My accountant seems to have locked that feature down for me. Waiting to hear their response to the same question..

She/he reads this forum...

[l35kee]

I created a new category called trivial benefits

My accountant seems to have locked that feature down for me. Waiting to hear their response to the same question..

[pr1]

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

I created a new category called trivial benefits

[Louisa@AardvarkAccounting]

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

I'd probably suggest 'Sundries' for trivial benefits. So, that staff entertaining is kept for annual events up to £150 per year, per attendee, that way it keeps both separate and easy to monitor.

[SuperLooper]

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

[Louisa@AardvarkAccounting]

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.

[l35kee]

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.

[pscont]

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?

[whats]

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.

[Louisa@AardvarkAccounting]

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!

[l35kee]

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

[northernladuk]

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

[SeanT]

Only 5-6 times a year

[l35kee]

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