Free Trivial Benefits for Directors and Employees
Understanding Trivial Benefits for Directors and Employees
Trivial benefits are small perks that businesses can offer to employees (including directors) without incurring tax or National Insurance costs. These benefits are designed to be small tokens of appreciation and must meet certain conditions to qualify:
- Cost: Each benefit must be £50 or less.
- Reason: It can’t be a reward for work or performance.
- Non-Cash: It can’t be cash or cash vouchers.
- Director Limit: Directors of close companies have an annual cap of £300.
Common examples include small gifts like a bottle of wine, chocolates, or a meal out. Trivial benefits are a great way to show appreciation while remaining tax-efficient!
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