Did you know that if you run your business through a Ltd Company, you may be able to receive up to £300 per year in tax-free trivial benefits?
A trivial benefit is a small gift from your company to you as a director. Common examples include flowers, chocolates, a meal out, a bottle of wine or a gift voucher.
To qualify, each gift must cost no more than £50, must not be cash, and must not be given as a reward for work you’ve done.
For directors of most owner-managed businesses, the company can usually provide up to six £50 trivial benefits each tax year. The cost is paid by the company, claimed as a business expense and, provided the rules are met, there is no tax or National Insurance to pay personally.
It’s a simple tax-efficient way to enjoy a few small perks throughout the year.
Not sure if your planned purchase qualifies? Get in touch.