Do you claim £300 of tax free benefits every year?

Do you claim £300 of tax free benefits every year?

These benefits are not so trivial

This is NOT some sort of tax avoidance.  The Finance Act 2016 introduced a statutory exemption from tax for “trivial” benefits in kind.  All you need to know is what you can claim and when.

You don’t have to pay tax on a benefit for your “employee” if all of the following apply. It:

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.  (You only have to pay tax on any benefits that don’t meet all these criteria.)

YOU are a director and therefore an employee of your own company.  BUT the exemption doesn’t only apply to you, it also applies to other “office holders” including members of your family who are employees.

So if your husband or wife is an employee, or a Director or Company Secretary, then they are also eligible for these tax free benefits.

What can you claim for?

Like a coffee?  Most mornings.  Well the company can provide you with a £50 gift card for Costa or Starbucks.  6 times a year.  It’s not a cash voucher so it’s tax free.

Or a store card.  Say John Lewis, or M & S.  Again – up to 6 cards each and every year, for up to £50 each.  The only proviso is that the store will not exchange them for cash.

And not only is there no Tax – there is also no National Insurance either.

 

For further advice existing clients email us at support@anytime.uk.com or call 03333 110 230

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