Did you know that as an employer, you can now provide trivial benefits such as a bunch of flowers, a box of chocolates, a meal out, gift voucher etc without having to put it on the P11D and without any tax or national insurance for either employer or employee. The employer will also be entitled to claim income tax or corporation tax relief on the cost.
There are three key conditions:
• the trivial benefit must cost no more than £50
• the benefit must not be a reward for services or in any way contractual
• the benefit must not be cash or a cash voucher
If you’re a director of a limited company this applies to you as well!
However there is one small additional condition- the legislation imposes an annual cap of £300 on exempt trivial benefits provided to a director or office-holder of a close company (including benefits provided to members of their family or household).
So what better time to get buying those gifts, champers or John Lewis vouchers as trivial expenses for your employees this Christmas!
